Friday, April 3, 2009

No Immediate Solution to Forex Crunch: Finance Minister

(Addis Fortune ) Ethiopia's foreign currency shortage is unlikely to be resolved anytime soon, the Minister of Finance and Economic Development disclosed.

"The country is faced with dual economic challenges; inflation on one side and shortage of foreign currency on the other," Sufian Ahmed, chief of the federal agency in charge of handling the country's finance, budgetary and bilateral economic cooperation matters said in a press conference last Friday, April 3, 2009 in his office.

The reason for the foreign exchange shortage traces back to the time when the price of imported goods escalated. During that time, the country had imported a large quantity of cement, construction metals, oil and fertilizer, which affected the country's foreign exchange reserve badly. For months now, however, the trend in the global market has moved in a reverse direction; the price of imported goods has fallen down significantly.

According to normal experiences, inflation can happen under conditions of production rates going down. What happened in Ethiopia, however, is different; the country's crop production over the last five years has increased considerably and inflation has been part of the economic situation, the minister explained.

Ethiopia's highest inflation rate, 61.7pc, was registered in August 2008, when the price of commodities, especially of food items skyrocketed. However, currently, early April 2009 data show that the country registered an inflation rate of 32.9pc, which is the lowest compared to any one of the inflation rates registered over the last six months.

Over the past five years, Ethiopia has registered an average economic development of 11.8pc.

Nevertheless, forecasts by the International Money Fund (IMF) for the country's fiscal year indicates that the growth may decline by almost half; though the government still maintains the double digit growth forecast. IMF's assertion is that the growth will be no more than 6.5pc, while the Ethiopian government claims that it will be 11.2pc.

For Sufian however, this is mainly due to the complete difference in the scope of the studies conducted by the two parties; 50pc to 25pc of the total population may not have been considered in the studies conducted by the government.

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ከዘኢትዮጵያ ታሪክ እና ባለ ታሪኮች

ከዘኢትዮጵያ ታሪክ  እና ባለ ታሪኮች
ይህን ቅርስ በአደራ ጠብቀውና ተከላክለው ያቆዩት ብ/ር ጄነራል ፍሬሰንበት አምዴ ነበሩ። በቅርቡ ከዚህ ዓለም በሞት ተለይተዋል። ላለፉት 30 ዓመታት ቤተመንግሥትን በዋናነት ሲያስተዳድሩ ከነበሩት ጄነራል ፍሬሰንበት ህይወት ጋር አብሮ የሚጻፍ ብዙ ታሪክ አለ። ለምሳሌ እነዚህ ይገኙበታል (ለማንበብ ፎቶ ግራፉን ይጫኑ)