Horn Africa Countries Monetary Power Regenerates Ramifications, Eritrea Pushes Inflation Rate Down

Nakfa currency - Credit: DSWphoto

Horn Africa Countries Monetary Power Regenerates Ramifications, Eritrea Pushes Inflation Rate Down

By Yosief Abraham Z

Various reports articulate that Horn Africa countries are now getting different paths in their monetary status. While South Sudanese economy has lost its main pillars of power after massive and unrestricted withdrawal of cashes from its financial institutions by clients, political instability has also been escalating inflation rate. With recent trends of foreign currency drainage probabilities to Ethiopia’s financial transactions and gate for shoe-leather inflation rate, possibilities for financial debacles have been in place.

For first time in its post-2000 financial journey, Eritrea’s market has been showing continuous reduction in the over-floated inflation, ushering enhanced possibilities to adjust prices and demands equilibrium. Following to financial regulation in the fall of 2015, monetary policy of the government from Asmara has been steadily successful in minimizing the culture of hoarding, curbing uncontrolled monetary circulation by illegal traders, including human traffickers groups and individuals.

Despite US agreement to relieve North-Sudan partial economic sanctions, limited manufacturing industries and moderate power of individuals in driving the economy, has been challenging Sudanese measurements for continuous economy growth. Currently stormed by low prices of oil in world market after starting exporting crude oil in the last quarter of 1999, North Sudan expects to install more reforms to meet challenges, to tackle its $36.27 gross external debt since 2009.

With exploiting 11.6% of its potencies in the agricultural sector, economists also comment also Eritrea to escalate trading and employment opportunities thus to victoriously adjust its consumers power thereby to prevent possibilities for temporary deflation, a scene of markets flooded by overly cheap prices. In opposite to the economy prospects in Eritrea, Djibouti’s economy power have been cemented by rents from lands to foreign countries, shrunken its agricultural sector below 4%.

Having the highest number of youth that seek employment opportunities, Ethiopia has now been in difficulties epicenter as its economy growth has been prospering the already wealthy members of the society. Partnered with China on major developmental endeavors, unregulated power of the over 23 banks to drive their foreign reserves freely has now breed the challenges of foreign exchange. In addition to the already experienced instability, unregulated cattle trading to Kenya and Somalia, cut on foreign assistance amount, among others, has been challenging its economy status.

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Yosief Abraham Z is a freelance journalist and Executive Director of HorMid Media and Art Center. You can contact him at josiabraham29@gmail.com

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