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EconomyEthiopia is undergoing a transformative phase in its economic history, marked by the National Bank of Ethiopia’s (NBE) recent announcement of sweeping foreign exchange (FX) reforms. The changes, which liberalize Ethiopia’s tightly controlled currency system, are part of a broader reform program aimed at stabilizing the economy, boosting investment, and promoting private sector growth. These
EconomyA team from the International Monetary Fund (IMF), led by Mr. Alvaro Piris, visited Addis Ababa from September 17 to 26, 2024, to evaluate Ethiopia’s progress on its ongoing economic reforms. This visit was part of the first review of the country’s economic program supported by the IMF’s Extended Credit Facility (ECF), following the approval
The National Bank of Ethiopia (NBE) has introduced updated price revision guidelines for gold procurement through its central and regional branches. This amendment comes in response to recent changes in the foreign currency market. According to the new guidelines, the purchase price of gold will be determined daily based on the foreign currency selling rate
Banking & FinanceThe National Bank of Ethiopia (NBE) has announced the commencement of accepting applications for Independent Foreign Exchange Bureaus. This move follows the recent approval of the Foreign Exchange Directive (FXD/01/2024), which took effect on July 29, 2024. Independent Forex Bureaus are authorized to engage exclusively in the buying and selling of foreign currency cash notes,
Banking & FinanceNational Bank of Ethiopia Concludes Special FX Auction with a Weighted Average Rate of Birr 107.9 per USD The National Bank of Ethiopia (NBE) announced the results of the Special Foreign Exchange Auction held today, revealing a weighted average rate of Birr 107.9 per US Dollar. The auction saw participation from 27 banks, and the
EconomyThe World Bank’s Board of Executive Directors has approved a $1.5 billion financing package to support Ethiopia’s home-grown economic reforms. This comprehensive support includes a $1 billion grant and a $500 million concessional credit from the International Development Association (IDA). The “Ethiopia First Sustainable and Inclusive Growth Development Policy Operation” aims to help Ethiopia transition
EconomyThe Executive Board of the International Monetary Fund (IMF) has approved a four-year arrangement under the Extended Credit Facility (ECF) for Ethiopia, amounting to SDR 2.556 billion (approximately US$3.4 billion). This arrangement supports Ethiopia’s Homegrown Economic Reform (HGER) Agenda, aiming to address macroeconomic imbalances and establish the foundations for private-sector led growth. The decision enables
EconomyPrime Minister Abiy Ahmed has announced key policy measures under the second phase of the Homegrown Economic Reform Program (HGER 2.0). The main highlights of the macroeconomic policy reforms include: In addition to these policy reforms, measures to support vulnerable sections of society have been outlined: These measures are designed to ensure a comprehensive approach
EconomyEthiopia has attracted $3.82 billion in foreign direct investment (FDI) during the recently concluded Ethiopian fiscal year, as reported by the Ethiopian Investment Commission. At a media briefing today, Ethiopian Investment Commissioner Hanna Arayaselassie highlighted the key areas of focus over the past fiscal year, including improving the business climate, promoting investment, facilitating activities, providing
EconomyThe Central Bank of the UAE (CBUAE) and the National Bank of Ethiopia (NBE) have signed a significant currency swap agreement, along with two Memorandums of Understanding (MoUs), aimed at enhancing financial cooperation between the two countries. The deal allows the CBUAE and NBE to exchange local currencies up to AED 3 billion and ETB
EconomyThe National Bank of Ethiopia (NBE) has announced that the country’s inflation rate fell to 19.9% in June 2024, a significant decrease from 29.3% during the same period last year. This marks a 9.4 percentage point reduction year-on-year. According to the NBE, non-food inflation decreased from 31.4% to 15.3%, while food inflation dropped from 28.0%
EconomyToday, Prime Minister Abiy Ahmed addressed the Ethiopian Parliament, where he faced numerous questions from lawmakers about the country’s current challenges and the impending ratification of a nearly one trillion Birr federal budget bill. Lawmakers expressed their concerns about the delays and budget overruns in key corridor projects in Addis Ababa, the effectiveness of current
