Ethiopia’s currency weakened on Tuesday, with independent forex bureaus quoting 177.34 birr per US dollar, significantly above official and commercial bank rates, according to Birrmetrics.

The central bank’s indicative rate remained at 153.04 birr, while commercial banks set their selling rates between 155.55 and 166.06 birr. Analysts said the gap reflects recent market volatility following the leadership transition at the National Bank of Ethiopia and a brief surge in demand during the New Year holiday, combined with commercial banks’ 10 birr incentive for remittance recipients.

Market experts note that the parallel exchange market continues to respond to demand and supply pressures, while intervention by the new governor, Eyob Tekalign (PhD), aims to curb informal trading and illegal money transfers.

Rising gold exports, which overtook coffee for the first time, alongside agreements with the IMF and World Bank, are expected to support the birr. Still, analysts caution that persistent volatility and the widening gap between official and market rates are increasing costs for import-dependent businesses and restricting access to hard currency for smaller firms.