Ethiopia’s foreign currency reserve increases to $3.2 billion

The foreign reserve of Ethiopia which has been depleting for many years, has now improved and reached 3.2 billion.

The reserve allows Ethiopia to cover basic import mainly fuel for about three months, according to the officials from the Ministry of Finance, who spoke to the ruling party affiliate media FBC on Wednesday. The State Minister of Finance of Ethiopia Dr. Eyob Tekelign stated that the government is trying to address the widening of the gap between the income and expenditure, saving and investment as well as import and export.

If such problems are not properly addressed properly by boosting local production and increasing export, the country may go into a major macroeconomic crisis, according Dr. Eyob Tesfaye, Macroeconomist who also participated in a panned organized by the broadcaster.

Durring the just concluded Ethiopian fiscal year (July 7, 2019), Ethiopia has earned around $2.8 billion from export of goods mainly agricultural commodities. Meanwhile the country has been spending around $17 billion every year for importing goods mainly capital goods and machineries.