CAPE TOWN – Ethiopia should slowly liberalise its exchange rate regime, but moving to a fully floating rate for the birr currency is unlikely over the next three years, its central bank governor told Reuters on Friday.
National Bank of Ethiopia Governor Yinager Dessie also forecast that the economy, one of the fastest-growing in Africa for the past decade, would expand by 10% in annual terms on average over the next three years.
“There is no doubt that we should move slowly to the market type of forex management. But our issue is that we need to look at the timing,” Dessie said. “Within the coming three years, we would like to relax a little bit on the currency side.”