REALLY THANK YOU HABTAMU LEGESSE(ASS. PFOFESSOR) FOR YOUR COMMITMENT AND BRIEF EXPLANATION ON WHAT IS MEANT BY FLOATING EXCHANGE RATE AND ISSUES ASSOCIATED WITH IT.
My brother your explanation on the new dollar exchange was very clear. I wish they put people like you to work for national Bank. The guy from NB reading I meant 😂 talking gave me a headache. I can't understand what he was trying to say. Thank you again for all you do. You got my subscription ❤
@economicsbyhabtamu
2 ай бұрын
@@RomanRoman-vj5xz Thank You 🙏
@natiman8775
2 ай бұрын
Thanks habtu.... Poor community laye yalewen effect ande biteseralin tebarek
Hi sir, can you estimate for how long this devaluation will stay before the goverment takes back control??
@adamemadiva1041
2 ай бұрын
good view.
@Seadajesus-zd1ik
2 ай бұрын
እናመሰግናለን ተጨማሪ ማብራሪያውን በቶሎ ብትለቅልን
@maranatabeyoutube6822
2 ай бұрын
Thank You dear
@gamebirhanu
2 ай бұрын
Great
@Ethiopianhistory1000BC
2 ай бұрын
እናመሰግናለን!
@NatanimNatu
2 ай бұрын
Wow😮😮😮😮😮
@IbnuHussein-w5l
2 ай бұрын
ሊደረጉ የሚገቡ ቅድመ ጥንቃቄዎችን ብትነግረን
@RomanRoman-vj5xz
2 ай бұрын
My brother, not to question your expertise, but what is it poor people use from imported material to affect their daily life?
@economicsbyhabtamu
2 ай бұрын
Currency devaluation in Ethiopia can significantly affect poor individuals who rely on imported goods by increasing prices, reducing access to essential goods, and exacerbating economic hardship.
@Sahlemariam.D
2 ай бұрын
@@5501sku Not only fertilizer, but all imported goods.
@selamehagere9366
2 ай бұрын
thanks
@merontesfaye9716
2 ай бұрын
አይይይይ ኢትዮጵያ 😭😭😭
@dawitdadi36
2 ай бұрын
well explained Habtish....as someone who have little knowledge in economic How does devaluation narrow the gape with black market? is black market not expected to increase with same proportion?.....keep up good work
@economicsbyhabtamu
2 ай бұрын
A floating exchange rate system can help narrow the gap between black market and official market exchange rates in several ways: 1. Market Determination: In a floating exchange rate system, the value of the currency is determined by supply and demand dynamics in the foreign exchange market. This can lead to a more accurate reflection of the currency's true value, which may reduce the incentive for black market trading. 2. Reduced Arbitrage Opportunities: When the official exchange rate is allowed to float, it is less likely to be significantly different from the black market rate. If both rates converge, arbitrage opportunities diminish, making black market trading less profitable. 3. Transparency: A floating exchange rate can increase transparency in currency valuation. As rates reflect real market conditions, individuals and businesses may prefer to transact through official channels rather than risk legal repercussions associated with black market dealings. 4. Policy Response: Governments may find it easier to implement monetary policy in a floating exchange rate system. By allowing the currency to adjust naturally, they can respond to economic conditions without resorting to strict controls that often lead to black markets. 5. Confidence in Currency: If a floating exchange rate leads to greater stability and confidence in the currency, individuals and businesses may be less inclined to seek out black market alternatives, believing that the official market will provide a fair exchange rate. 6. Reduction of Currency Controls: If a country transitions to a floating exchange rate from a fixed or heavily managed system, it may simultaneously reduce or eliminate currency controls. This can directly decrease the size of the black market as individuals gain easier access to foreign currency through official channels. 7. Economic Adjustment: A floating exchange rate allows for automatic adjustments in response to economic shocks or imbalances. This flexibility can help stabilize the economy and reduce the factors that contribute to black market activity, such as inflation or scarcity of foreign currency. While floating exchange rates can help narrow the gap between black and official markets, it is important to note that this transition must be managed carefully, as sudden shifts can lead to volatility and uncertainty, which might initially exacerbate black market activities before stabilizing.
@dawitdadi36
2 ай бұрын
Thank you for brief explanation....let see time will tell..I heard today black Marek increase by close to 30%
@economicsbyhabtamu
2 ай бұрын
@@dawitdadi36 Please see the last paragraph
@dawitdadi36
2 ай бұрын
@@economicsbyhabtamuI have seen it habtish It would be 🤞....hope you remember who i am as well :)
@economicsbyhabtamu
2 ай бұрын
@@dawitdadi36Yes, I remember you 🙏 You are Dawit Dadi from Harar and you are also my brother 🙏
The cases you mentioned (Japan and South Korea) can't be an example to mention here. It is like South East Asia countries were successful in developmental state (DS) and let's copy it here. We did a DDS but doesn't work out. I personally can't see the benefit of changing from managed floating to a completely flexible exchange rate. I feel like my country is being sold for 10 billion USD. We better focus on adding value to the agricultural products (instead of exporting raw materials) we export to the rest of the world. It is like we export fruits and we import processed juice
What is wrong with you people? Why can't you make your point without insulting the uploader. Some people will never civilize, Jesus! Anyways thanks for the video, it was very helpful!
black market manew control yemuyaregew... black market erasu wagawe yechemerale demom manem sew nurowem wedenete selemikebedew l 1birr terf sile black market mehedu ayekerem
@economicsbyhabtamu
2 ай бұрын
@@simont733 A floating exchange rate system can help narrow the gap between black market and official market exchange rates in several ways: 1. Market Determination: In a floating exchange rate system, the value of the currency is determined by supply and demand dynamics in the foreign exchange market. This can lead to a more accurate reflection of the currency's true value, which may reduce the incentive for black market trading. 2. Reduced Arbitrage Opportunities: When the official exchange rate is allowed to float, it is less likely to be significantly different from the black market rate. If both rates converge, arbitrage opportunities diminish, making black market trading less profitable. 3. Transparency: A floating exchange rate can increase transparency in currency valuation. As rates reflect real market conditions, individuals and businesses may prefer to transact through official channels rather than risk legal repercussions associated with black market dealings. 4. Policy Response: Governments may find it easier to implement monetary policy in a floating exchange rate system. By allowing the currency to adjust naturally, they can respond to economic conditions without resorting to strict controls that often lead to black markets. 5. Confidence in Currency: If a floating exchange rate leads to greater stability and confidence in the currency, individuals and businesses may be less inclined to seek out black market alternatives, believing that the official market will provide a fair exchange rate. 6. Reduction of Currency Controls: If a country transitions to a floating exchange rate from a fixed or heavily managed system, it may simultaneously reduce or eliminate currency controls. This can directly decrease the size of the black market as individuals gain easier access to foreign currency through official channels. 7. Economic Adjustment: A floating exchange rate allows for automatic adjustments in response to economic shocks or imbalances. This flexibility can help stabilize the economy and reduce the factors that contribute to black market activity, such as inflation or scarcity of foreign currency. While floating exchange rates can help narrow the gap between black and official markets, it is important to note that this transition must be managed carefully, as sudden shifts can lead to volatility and uncertainty, which might initially exacerbate black market activities before stabilizing.
@simont733
2 ай бұрын
@@economicsbyhabtamu so for example today ret is 74 and black is120 its hard to say gap.. my question is what aver you call floating or samthing because no one control black tommorow can be 500 and the NBE goes to 499.5 to naro the gap???
@economicsbyhabtamu
2 ай бұрын
@@simont733 Please read the last paragraph of the above comment
Пікірлер: 85