pment (The Europa World Yearbook 1351). Djibouti is also given to natural hazards including earthquakes, droughts, and flash floods. There is no arable land, no permanent crops, and no forests or woodlands. Throughout Djibouti, potable water supplies are vastly inadequate (CIA 2).
Buoying the economy of Djibouti is an inflation rate that has been managed by fixing of the Djibouti Franc to the American dollar. Also, foreign assistance to Djibouti helps to support its balance of payments as well as to finance dev
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