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Ethiopia’s parliament has approved a half a billion dollars loan agreement and a draft proclamation. The agreement is between Ethiopia and the International Development Association (IDA), a member of the World Bank Group. IDA yesterday approved a 1.5 billion dollars financing deal with Ethiopia, including a one billion dollar grant. “500 million dollars of the […]

The National Bank of Ethiopia (NBE) has revised its gold pricing policy to value purchases at current international market rates, the central bank said on Wednesday. The move comes after Ethiopia introduced a more market-driven exchange rate regime this week, allowing commercial banks more flexibility to set rates rather than intervening to strengthen the birr

The World Bank’s Board of Executive Directors on Tuesday approved a 1.5 billion dollars financing package for Ethiopia to support home-grown economic reforms, the bank said in a statement. The “Ethiopia First Sustainable and Inclusive Growth Development Policy Operation” includes a $1 billion grant and $500 million in concessional credit from the World Bank’s International

Ethiopia, newly awash in billions from a landmark IMF deal, is setting a sprint to the finish line for its long-delayed debt restructuring, aiming to seal the deal within six months. The 3.4 billion dollars lifeline from the International Monetary Fund, announced Monday, has infused the Horn of Africa nation with renewed optimism and, crucially,

Ethiopia’s Ministry of Finance said on Tuesday it will maintain a ban on imports of fuel-powered cars, even as the central bank lifted restrictions on imports of 38 other previously banned items. In a letter signed by Finance Minister Ahmed Shide to the National Bank of Ethiopia dated July 30, 2024, the ministry said the

The International Monetary Fund (IMF) has approved a 3.4 billion dollars financing package to back Ethiopia’s economic reform plans over the next four years. The IMF Executive Board signed off on a 48-month arrangement under the Extended Credit Facility. It provides about 850 percent of Ethiopia’s IMF quota to fund the government’s Homegrown Economic Reform

Ethiopia’s birr currency has weakened substantially in the official market since the new flexible foreign exchange regime took effect, depreciating around 30 percent against the U.S. dollar in just first day of trading.   The Commercial Bank of Ethiopia, the nation’s largest lender, on Monday set its dollar/birr buying rate at 74.7, compared to 57.4

The central bank said its overhaul of foreign exchange rules will be supported by 13.5 billion dollars in coordinated financing from multilateral lenders and creditors as it liberalizes the market. Helping ease transition costs of adopting a floating rate and reforms will be 10.7 billion dollars offered by external partners – termed the biggest such

Ethiopia has liberalized its foreign exchange regime, enabling banks to set their own rates in currency trading but ending their monopoly with newly legalized competition from non-bank players. The National Bank of Ethiopia (NBE) has announced sweeping reforms to liberalize its foreign exchange system and shift to a market-based regime, formalizing a major shift in

By Yared Seyoum Market-based FX rate regime is hoped to relieve FX shortages, remove constraints to private investment and growth, align import/export prices with reality, and address balance of payments imbalances. Ethiopia is in the final hours of preparing for a landmark transition that will see its currency adopt a flexible exchange rate regime, a