Two Ethiopian local governments have closed several businesses for hiking prices after the central bank floated the national currency.
This action was taken to curb inflation following a recent economic shift.
The Ethiopian birr weakened by 28% against the dollar when the central bank adopted a market-determined exchange rate.
This move was made to secure a new IMF lending program and address debt restructuring.
Sewnet Ayele, spokesperson for Addis Ababa’s City Trade Bureau, said businesses unjustly increased food prices, although the goods were imported before the exchange rate change.
A total of 71 businesses faced closure.
In Oromiya, 19 businesses were shut down, and three people were detained for similar offenses.
Meseret Assefa, head of Oromiya’s Trade Bureau, noted the swift price hikes following the exchange rate announcement.
Cooking oil saw the most significant price jump, rising by 25% or 300 birrs, according to a trader.
Despite economic reforms securing IMF support, analysts worry about price surges affecting Ethiopia’s poor.
