"Another devaluation of the manat in the short term is not expected" says think tank

Government forces in Ethiopia, have taken control of the town of Mekelle, capital of the Tigray region. Earlier, Ethiopia's federal military said it had recaptured the main airport in the capital of the northern Tigray region, dealing a major setback to an ​opposition alliance in its stronghold. Clashes pitting a rebel alliance led by Tigray's ruling party ‌against the government and its allied forces broke out in northern Ethiopia last week, in the most serious escalation of violence since a 2020-2022 civil war. The fighting has stoked fears that it could escalate into a wider regional conflict, potentially drawing in neighbouring ​countries in the Horn of Africa and the Gulf. In recent days Ethiopia and Eritrea broke off diplomatic relations amid mutual accusations. In Washington, State Department spokesman Tommy Pigott ​said the United States strongly urged Ethiopia and Eritrea to "exercise maximum restraint and return ⁠to dialogue and cooperation as agreed in their 2018 peace framework." "The Horn of Africa cannot sustain another ​military conflict and humanitarian crisis," Pigott said. "A conflict jeopardizes ongoing U.S. collaboration on shared interests with both countries." The ​federal government in Addis Ababa accused Eritrea of supporting the rebel alliance alongside Sudan and Egypt. The three countries deny this. Troops from the Ethiopian National Defence Forces had regained control of Alula Aba ​Nega Airport in Tigray's capital Mekelle,   A Mekelle resident who asked not to be named for security reasons, confirmed the ‌taking of ⁠the airport by government forces and added they could hear gunfire outside the city centre. This source said they had seen some Tigrayan Defence Force fighters abandoning their posts and heading home, and that there was looting of government facilities taking place in the city. Mekelle's airport, which ​is around 10 km (6 miles) from the centre of the city, was ​one of three ⁠airports in the region that were seized by the opposition forces at the start of the fighting on September 23. The taking of Mekelle by government forces would be a major setback for the opposition alliance, although analysts say ⁠it ​would be unlikely to end the conflict. In 2020, federal forces captured ​Mekelle within the first month of the two year war before the TPLF reclaimed it seven months later.