Food prices in Ethiopia plunge to a record high as the US dollar rate incredibly goes up. The fluctuations come as the rate of US dollar exchange in the black market reached the highest ever. Ethiopia is a landlocked country and much of the food items and electronics are imported from the middle east and Asia. However the merchants who deal with the country’s import trade use USD to purchase everything but when these businesses are brought home, it’s dependent on the rate of the dollar they used to buy these goods and services. Ethiopia uses the Somali coasts as a gateway to bring goods and services into the country but most business dealers are Somalis. Another reason could be the government’s inability to intervene in the market system even though they have a limited involvement in international trade.
A high rate of food fluctuations are being felt throughout the country and that’s putting many poor families under extreme living conditions. Ethiopia is one of the poorest countries in Africa and the world and anytime food prices go up, a significant part of the society suffers the most. The government hasn’t spoken about this yet and it seems that they don’t care about it as it has happened many times before. The following table highlights the prices of the food before and now according to yesterday’s prices.
See a food prices breakdown here and as the inflation continues to rise, I will share you what people’s life is like hopefully some day. Till then have a good day!