Compassion projects in Ethiopia

  • 1
  • Question
  • Updated 1 year ago
  • Answered
  • (Edited)
Archived and Closed

This conversation is no longer open for comments or replies and is no longer visible to community members. The community moderator provided the following reason for archiving: case resolved

I have heard from my friend that the Ethiopian government devalued the value of the Birr by 15% to boost exports.  It used to be $1 = 23 birr, but now it is $1 = 27 birr. 

In result, there was an increase in price on most of the goods making local people harder to live.
It seems like Compassion projects in Ethiopia will have harder time to support children because of the price inflation in the country. How does Compassion handle in this kind of situation? 
Photo of Jenny Kim

Jenny Kim

  • 176 Posts
  • 54 Reply Likes

Posted 1 year ago

  • 1
Photo of Shannon Massey

Shannon Massey, Employee

  • 1730 Posts
  • 300 Reply Likes
Hi Jenny, 
Compassion knows that exchange rateschange and inflation happens all the time. We do have systems in place to providethe same level of support regardless of fluctuating economies to all of our kiddos, no matter the country they live in. :)

 
Photo of Jenny Kim

Jenny Kim

  • 176 Posts
  • 54 Reply Likes
Does Compassion send our monthly sponsorship once a month or every couple of months? Since the rate of US dollar is increasing now, will Compassion Ethiopia be provided more financially from US sponsors due to currency exchange ?
Photo of Shannon Massey

Shannon Massey, Employee

  • 1730 Posts
  • 300 Reply Likes
Hi Jenny, 
Compassion sends funds every month. 
In order to answer your second question, I am gathering a bit more information from a few sources for you. I will get back with you as soon as I hear back. Thank you for your patience!  
Photo of Shannon Massey

Shannon Massey, Employee

  • 1730 Posts
  • 300 Reply Likes
Hi Jenny, 
I apologize for the delay in getting back with you. Our financeteam was able to assure us that the devaluation of the Ethiopian Birr will notaffect the support that Compassion sends for our programs in Ethiopia. Ethiopiais a currency that doesn’t have significant volatility. The news inEthiopia is that on October 10th the central bank devalued the currencyby 15 percent to boost lagging exports. The depreciation in the ETB isdue to this government intervention rather than anything to do with USDperformance.
I hope this is helpful! 

This conversation is no longer open for comments or replies.