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Eritrea: The problem of balance of payment (introduction)

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Review overview
  • SlowDown July 19, 2014

    Selam TwoWayStreet,

    Excellent! Brief and to the point. As a lay person with no Economics background I was able to understand your explanations.
    Thank you for taking the time to write.

  • Kiflom July 19, 2014

    I can’t ask more, I don’t think you need to write it in Tigrigna. Well done. Unfortunately, the economic upheavals and the misery is just inextinguishable, I mean it will take us decades to reverse the trend. It’s very sad that we as a people we continue to live in vicious circle. We being betrayed and kept hostage by irresponsible governance.

  • Wedi Hagher July 19, 2014

    Thank you TwoWayStreet, very clear explanation of what is happening in our beloved Eritrea.

    The regime failed to provide people with basic necessities. At the individual level, income is not covering the families expenses. So they have either to drop some of their needs or get money from somewhere else. That is why now in Eritrea, in government offices bribes are being tolerated and used to get almost anything you want. People pay five thousand USD to reach Kasala safely.

  • Dala Ksha July 19, 2014

    Excellent explanation I can’t added more ,thank you for informing us about what is going on in our country.

  • Teclay July 19, 2014


    Excellent ! you brought very interesting subject.It looks like economics for dummies. In fact the picture was so good it is equivalent to the article.As a lay man to economics limited only to common course,i always wounder how Eritrea can not cover its expenses.But what you are explaining us is contrary to what i used to believe. As a lay man.I used to believe the Gov has enough hard currency.Why ?
    income:,, Which the other African countries do not have remittance and 2% even with out income from the minerals.
    Import and consumption,,,,, Must be too law because out of the 3 mil ppl ,May be only 500,000 ppl needs imported goods, the rest are living from the Land.
    Can you explain to us the above points ,i do know if i am clear.I always wonder how the rest of African countries are living then ? For Example Ethiopia during Mengustu`s era ,,the country did not enjoy relations with IMF or world Bank .But the country with the population of 46 mil then had not experienced such shortages.

  • Letay July 19, 2014

    It explains in a simple language the current economic situation in Eritrea.

  • Habte K. July 20, 2014

    Dear writer,

    Thank you for the simple and to the point explanation of the whole facts in Eritrea.
    However, we should propose the public the solution to the current problems in Eritrea as well.

  • selamawit2 July 20, 2014

    well done, thank you.
    Sanction against Eitrea(s regime) should than be part of point “H”?

  • Cabral July 23, 2014

    Twowaystreet presented the fundamental concepts of international economics in a layman’s term. Thank you Twowaystreet. With regards to Eritrea’s current economic policies GOE has come up a smart solution. It has cut the domestic demand for hard currency by systematically crippling local businesses to the point of shutting down. No demand for hard currency, no need to officially balance the BOP gap.