Price instability rocks Ethiopia as it reels from foreign exchange rate reforms

abcnews.go.com:

The prices on the menu have been erased at a small hotel in a suburb of Ethiopia’s capital

ADDIS ABABA, Ethiopia — The prices on the menu have been erased at a small hotel in a suburb of Ethiopia's capital.

That was no mistake, the waiters said, as businesses in Addis Ababa struggle to keep up with spiraling inflation since the government implemented a flexible exchange rate policy late last month.

Since then, the Ethiopian birr has lost 60% of its value against the dollar as of Monday, sparking anxiety as customers are forced to pay more for basic commodities and some businesspeople are hoarding.

The menus at the Samra Hotel in Bole, a leafy suburb of Addis Ababa, captured the instability: There's a new price for every meal at any moment.

“Previously, prices would be updated bimonthly but nowadays it’s on a daily basis, if not by the hour, to reflect the changing landscape of the market," said Rahel Teshome, who works at the hotel.

Many supermarkets in Addis Ababa are hoarding products in warehouses and only selling small quantities in their stores to escape punishment by city authorities, who have vowed to crack down on hoarders. Consumers who want to buy in bulk must pay inflated prices for products they are told to pick from warehouses.

In Merkato, the capital's biggest open-air market, guards are stationed in an attempt to keep businesses from raising prices. Last week, police officers raided some warehouses and confiscated 800,000 liters (210,000 gallons) of edible oil they later distributed to local cooperatives, which offered it at previous prices. More than 3,000 stores accused of hoarding have been shuttered across the country.

The Addis Ababa City Trade Bureau has warned that more actions will be taken