Ethiopia, the country sees 20% inflation and introduces new notes. The Ethiopian government is unveiling a new series of banknotes. While this is expected to help the authorities to get a better grip on cash, illicit trade and money flow, this seems to be a sign on the wall. Can inflation in the African country no longer be kept?
The idea behind these new types of notes is to increase the liquidity of banks. They have a lot of trouble with the current status of the country’s economy. This mainly runs on cash.
In a statement released on September 14, Abiy Ahmed Ali, the country’s prime minister, announced the unveiling of the new 10, 50 and 100 Birr notes. But there was also a new unit: a note of 200 Birr.
A report says the government plans to add about $ 97 million (3.6 billion Ethiopian Birr). Ethiopian citizens are supposed to replace their old banknotes within three months.
It is about the replacement of the old type of bills and not so much about the new Birr that enters the economy as a result of brrrr .
The introduction of the 200 Birr is, however, remarkable. Is further inflation lurking and is the government already responding to this with this action?
A well-known example is the 100 trillion Zimbabwean dollar bill. It is an iconic note known in the Bitcoin community as the ultimate example of a failing currency. Fortunately, it is not yet that far in Ethiopia.