Ethiopia: Foreign Exchange Rate Related Risks, Possible Solutions

[Ethiopian Herald] Foreign exchange is the conversion of one country's currency into another. In a free market, a currency is valued according to the laws of supply and demand. In other words, a currency's value, such as the Ethiopian Birr, can be pegged to another country's currency, such as the US Dollar, or even to a basket of currencies. The sources of foreign exchange are exports of goods and services and foreign investment. The amount of foreign investment increases the supply of foreign exchange.

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