Prime Minister Abiy Ahmed of Ethiopia has defended this week’s move to a foreign exchange rate set by the market, claiming that it was not a devaluation of the birr currency but rather an attempt to reduce the difference between official and black market rates.

To get financial backing from the International Monetary Fund (IMF) and other creditors, and to restart the country’s long-delayed debt restructuring deal, the central bank on Monday enabled the birr to float freely.

On Friday, the largest lender in the nation, Commercial Bank of Ethiopia, reported that the birr had since dropped 31.5% versus the dollar, trading at 83.94 per greenback. Several economists and journalists have expressed fear that inflation may spike as a result.

“Saying Ethiopia has devalued its currency is wrong,” Abiy said in a televised briefing late on Thursday to explain the new policy.

“There were two markets. One is 100 and the other is 50. So when the gap between the two became wide, it brought many dangers. So what we said (the two) should be unified,” he said.

While removing foreign exchange trading limitations assisted Ethiopia in securing funds from the World Bank and the IMF, worries about the policy’s potential to drive up costs for low-income consumers have prompted at least two local governments to take action against businesses that raise prices.

According to the government and its creditors, liberalization will increase long-term growth and allow the private sector to contribute more to the economy.

Shortly after the currency was floating, Ethiopia received a $3.4 billion loan from the IMF. According to a senior official in the finance ministry, this would allow Ethiopia to finish restructuring its debt over the next three to six months.

Not long after, the World Bank authorized $1.5 billion in funding for Ethiopia’s first-ever budget support loan. According to Abiy, the restructuring of its $1 billion Eurobond would save $200 million thanks to the new financing.