The foreign currency reserve of Ethiopia which has been dwindling for many years has now begun increasing. It has leapt to USD3.2 billion, the Ministry of Finance indicated.
The increment in foreign currency reserve allows Ethiopia to cover its basic importing expense such as fuel and medical facilities that would last for approximately three months.
According to State Minister of Finance of Ethiopia, Dr. Eyob Tekalign, the government is trying to address the broadening of the chasm between the income and expenditure, saving and investment as well as import and export operations of the country.
As the challenges are not appropriately addressed, enhancing local production and increasing export trade of the country would further improve foreign currency and macroeconomic watershed, according to state Minster.
Dr. Eyob insisted that having large reserves of foreign currencies for our country will allow countries to meet their payment obligations without imposing too much strain on their own internal economies.
He noted that in the concluding 2019 fiscal year, Ethiopia has earned around USD 2.8 billion from exported goods mainly from agricultural commodities. Meanwhile the country has been spending around USD 17 billion every year for importing goods mainly for the capital goods and the machineries items, the State Minister said.
The Ethiopian Herald July 21/2019
BY MUSSA MUHAMMED
