Ethiopian currency falls sharply after big policy change

The value of Ethiopia's currency has fallen by 30% against the US dollar after the government relaxed currency restrictions, one the country's biggest banks, the Commercial Bank of Ethiopia, has said.

The government reversed its long-standing policy of fixing the exchange rate in a bid to secure a loan of $10.7bn (£8.3bn) from the International Monetary (IMF) and World Bank.

Some Ethiopians have received the news with apprehension fearing that it will lead to a sharp rise in the cost of living at a time when inflation is already high.

The country has been struggling with chronic foreign currency shortages particularly in recent years.