Ethiopia's Budget Amid Birr Devaluation: A Heterodox Analysis of Economic Challenges

In September 2024, Ethiopia floated its currency following an IMF agreement, causing the exchange rate to shift from 1 USD = 56 Birr to 1 USD = 115 Birr overnight. While orthodox economists praise the market liberalization, the article argues the country faces a more complex and potentially perilous path, with the devaluation triggering inflation that disproportionately impacts vulnerable populations and effectively halving Ethiopia's international purchasing power.