You are a person with extraordinary mind you helped us in understanding the reform specially for common person like me. Let the Almighty God bless you and keep it up !!
I appreciate you for the awareness creation to the society. We need a professional like Ermiya who belive on his experty and courageously put opinion regardless of the any influence and pressure. I really appreciate your effort, but I have reservation on the applicability cause the country is in full flegd war and instability so how would be productivity increase and FDI flow to the country.
first know how to write english.....you are adult kid with a brainwashed mind.....i can see your mind through your words via your mouth. there is nothing to be ashamed of being ethiopian....idot
Thank you Ermias. I wish you could explain the worst case scenario as it a fact that the implementation of IMF economic policy failed in some countries even leading to the change in the government. What precaution the government should take.
@@amenyonas3865 That can be one of the reason. There can be more reasons and there is a lesson we can learn. I hope he or another person would explain it. I don't want to hear some economists saying this is a disaster or Ermisa saying only this is a good change we should accept it. I want to see a balanced view weighing the pro and cons. I want to see the success of this policy change though I am not happy the current leaders the way they manage the security of the country. I have a doubt the success of this policy under the current security situation of the country and reckless spending habit of the government.
I am sure he knows far more better than you. Because he invested billions in this country. He follows every single progress that's happening here because it affects him much more.
Nigeria is a good example for Ethiopians to learn the consequences of devaluation When a currency weakens against the US dollar, local prices increase because many essential items, like food, are imported. For most countries in the region, more than two-thirds of imports are priced in US dollars. Inflation A 1 percentage point increase in depreciation against the US dollar can lead to a 0.22 percentage point increase in inflation within the first year. Harm to businesses and consumers Higher costs for raw materials can lead to inflation, which can harm businesses and consumers. This effect is especially pronounced in countries with weak currencies or economies that rely heavily on exports. Difficulty sustaining economic growth If countries can't maintain their current level of production or exportation due to high import costs, they may find it difficult to sustain economic growth. Increased risk of poverty Currency depreciation can increase the risk of poverty. For example, Nigeria has experienced high inflation, increased unemployment, and multidimensional poverty after devaluing its currency.
Theoretically you are right devaluation makes rise in inflation but technically our currency did not devaluate yet. the country's economy has been determined by the black market (1$ =120) as it was the major source of the foreign currency for importers. but now thanks for this new policy importers can get an unlimited amount of foreign currency from the banks.
@@dagi6055 The black market has already hit Birr146/US$1, and some banks are buying a dollar for around Birr100. The goernment will print more money to increase the salaries of its soldiers and employees. Both the floating exchange rate and money printing will hasten the downfall of the regime. What we view in Nigeria will be what we will view in Ethiopia within the next few months.
@@dagi6055 in addition at least 82% of imports in Ethiopia are made using dollars obtained from the black market according to NBE governor so in effect the government policy is the unification of the two rates.
@@TheBex2007 keep your negativity and falling spirit to yourself ! Do not be fear monger -he is a man who practice business and educates - not only knows it from theory asoect - you have eatean too much lies from thr tree of evils - let your wish be granted to yourself only - I pray 🙏🏽Ethiopia to be prosperous and blessed in the coming years - let failure be the fate the enemies of the people who speak lies and fear due to their hidden issue. Can you put your education record against him? Are you that much educated ? II doubt you are even close to him. Have a renewed mind.
ceteris paribus, Inshallah! We have such an unpredictable government but inshallah 🤞🏽. Thank you for working towards clarity with this video, informed citizen make better decisions.
I had to google and see your educational background. Economics and political science . What an interesting subjects; that fits you very well. Are you sent from Abiy to control damage and calm the people? We will see what will happen in the next few weeks.
What he is talking about is based on Western countries' economic model, where a modern market system with rules and regulations exists. In Ethiopia, however, the market is controlled by illegal networks and traders. For example, if you want to buy a house, the price is not determined by supply and demand. Instead, it is decided by greedy dealers and real estate agents. Merchants are already hoarding most goods in anticipation of price hikes. The black market exchange rate is rising, and if banks continue devaluing the birr to match this rate, we could face hyperinflation like Zimbabwe. The most concerning part is the lack of any plan for salary adjustments for private employees and retirees. Additionally, the unemployment rate is around 30%. So, while his theories may seem workable, the reality on the ground is different. You don't need to be a rocket scientist to understand this.
