Pan-African Bank Finds Middle Ground between Ethiopia Gov’t, IMF Growth Forecasts

AfDB growth forecast stands at 7.3%, Government 8.9, IMF 6.6 The African Development Bank (AfDB) forecasts Ethiopia’s economy will grow by 7.3 percent in 2025, deviating significantly from the government’s prediction of 8.9 percent and the International Monetary Fund’s (IMF) estimate of 6.6 percent. The pan-African bank indicated the figure in its Country Focus Report for Ethiopia, which was published this week. The launch of AfDB’s report coincided with a dialogue series held under the theme – ‘Ethiopia 2025 Country Focus Reports: Making Ethiopia’s Capital Work better for Ethiopia’s Development’, according to a press release by the AfDB Ethiopia office. The report was launched a day after the AfDB Group headquartered in Abidjan, Cote d’Ivoire, officially announced the subsequent launch of the CSP (Country Strategy Papers) series for all African countries. The launch ceremony for Ethiopia CSP took place on Tuesday at the Radisson Blu Hotel, Addis Ababa, in the presence of government officials, academia, development partners, and different stakeholders. Accordingly, forecast in the report is a 7.3 percent GDP growth for Ethiopia in 2025, which the bank said contrasts Ethiopia’s economic growth of 6.6 percent during the 2023/24 fiscal year.  Ethiopia, it said, was “slowly emerging from multiple overlapping shocks over the past four years.” An IMF growth outlook for Ethiopia issued months ago puts the annual growth at 6.6 percent, making for a varied picture painted by the Ethiopian government, the IMF and the AfDB. “The fiscal deficit narrowed to 2.0 percent of the Gross Domestic Product in 2023/24 from 3.3 percent. The financial sector remains stable, with a non-performing loan ratio of 3.9 percent. Yet, inflation remained high at 26.6 percent in 2023/24 and is forecasted to drop to 15.9 percent in 2025. Ethiopia faces a high risk of debt distress. Per capita income reached USD 1,937 in 2023/24,” reads the press release. The bank indicated that Ethiopia needs 13.2 percent of its GDP in additional financing requirements by 2030 to realize its ambition of structural transformation. Shrinking tax revenue growth and a tax-to-GDP ratio of just 6.2 percent mean the country has been forced to address spending pressures through cuts in capital expenditure, which have affected access to social services, according to the report. It recommends that Ethiopia consider using different revenue mobilization tools to tap into its vast capital potential, specifically its potential in investment capital, human capital, and especially its natural capital. These tools , it noted, included green bonds, carbon credit, leverage Fintechs, capital market, optimize human and natural capital, expanding the domestic resource mobilization base, and investing in strategic areas to diversify the growth frontiers. Ethiopia has sizable natural and human capital and is Africa’s fourth wealthiest nation in renewable resources. Nonetheless, the AfDB presser said, the Horn of Africa country has yet to benefit from these resources due to inadequate institutions and infrastructure, low technology adoption, poor governance, and weak capacity.

Ethiopia Mandates Federal Agencies to Accept All Licensed Digital Payments

Ethiopia Mandates Federal Agencies to Accept All Licensed Digital Payments Addis Ababa, June 2025 — Ethiopia’s Ministry of Finance has formalized Directive No. 1069/2025, requiring all federal public institutions—from tax offices to utility providers—to accept payments via any licensed payment service provider, including: Mobile money platforms Debit and credit cards Prepaid instruments Internet banking services These must be licensed by the National Bank of Ethiopia (NBE) (mofed.gov.et, africanenda.org, mfw4a.org). Key Provisions: 90-Day Compliance Deadline: All agencies must integrate with licensed digital payment providers by late August 2025, with 30-day progress reporting to the Ministry (mofed.gov.et). Non-Discrimination Clause: Agencies are forbidden from rejecting any legitimate payment method based on provider identity, so long as it’s duly licensed (mofed.gov.et). Full Fee Collection: Agencies must collect government-set fees regardless of transaction costs associated with different payment instruments . Oversight & Support: The Ministry’s Inspection Department will oversee implementation, and agencies can request technical assistance from the Treasury Department (betterthancash.org). Legal Basis: Grounded in Article 75 of the Federal Financial Administration Proclamation, this directive expands upon earlier electronic payment regulations (mofed.gov.et). Strategic Context & Sector Alignment Ethiopia’s Digital Payments Strategy: This mandate aligns with Phase Two (2025–2029) of the National Digital Payments Strategy (NDPS), focusing on deepening usage, full interoperability, and merchant adoption—including public sector payment modernization (nbe.gov.et). Recent Fintech Reforms: The NBE has been tightening its digital finance regulations, including stringent licensing norms (e.g., ONPS/10/2025), mandatory interoperability, and higher capital thresholds for payment providers (stockmarket.et). Massive Digital Adoption: Between 2023 and 2024, digital financial services users and transaction volumes surged—by December 2024, over 128 million mobile money accounts were active, and digital transaction value surpassed 9.7 trillion Birr (nbe.gov.et). Implications for the Economy & Public Services Modernizing Revenue Collection: Enabling digital payments across federal services reduces cash handling, streamlines operations, and brings greater transparency. Driving Financial Inclusion: The directive supports Ethiopia’s vision for a cash-lite economy by promoting access and convenience in public payments—bolstering inclusion of SMEs, women, and rural users. Boosting Fintech Competition: By mandating acceptance of all licensed providers, the government fosters innovation, pressures legacy providers to improve, and enhances consumer choice. Challenges & Next Steps Tech Integration: Agencies must rapidly adapt legacy systems to integrate with licensed providers. Technical support from the Treasury may be vital. Staff Training: Rollout success hinges on training frontline and back-office staff to manage digital payment workflows effectively. Monitoring Rollout: The Ministry’s inspection body will play a key role in enforcing compliance during the 90-day window. Ethiopia’s Directive No. 1069/2025 marks a pivotal move toward a digital-first public sector. Anchored in a broader reform agenda—aligned with both NDPS Phase Two and NBE’s fintech regulations—the measure promises smoother, more inclusive public services and deeper financial inclusion. As the late-August deadline looms, successful implementation will depend on inter-agency coordination, technical execution, and oversight.

Addis Ababa Reports 89% Pass Rate in 8th Grade Exit Exam, Signaling Steady Academic Progress

Addis Ababa Reports 89% Pass Rate in 8th Grade Exit Exam, Signaling Steady Academic Progress ADDIS ABABA – June 24, 2025 — The Addis Ababa Education Bureau has officially released the results of the 2017 Ethiopian calendar (2024/2025 Gregorian) 8th Grade Exit Examination, revealing that an impressive 89 percent of students have successfully passed and are now eligible to advance to the 9th grade. Speaking at a press briefing this afternoon, Dr. Zellamo Mulatu, Head of the Education Bureau, shared key statistics and insights into this year’s performance. According to the Bureau, 62,639 out of the 70,525 students who sat for the exam achieved the minimum passing criteria, a figure that underscores the capital city’s continued investment in education despite various challenges. “This is a promising outcome,” Dr. Zellamo stated, “and a reflection of the collective efforts of students, educators, families, and policymakers. While we celebrate this achievement, we also recognize areas where continued support is necessary—particularly in schools serving marginalized communities.” Top Performers: Boarding and Private Schools Lead the Rankings Among the 20 highest-scoring students in Addis Ababa, a significant number—13 students—attended government boarding schools, which are known for offering more structured academic support. Additionally, 3 of the top performers came from private institutions, suggesting that both public and private sectors are contributing to academic excellence. The remaining four top scorers were not specified in the announcement. This year’s highest individual score was 97.3, a notable benchmark that reflects academic rigor and student discipline. Digital Access to Results To ensure transparency and ease of access, the Education Bureau has made the results available online. Students and guardians can check individual scores through a dedicated link published on the Bureau’s official social media platforms, reflecting the growing integration of digital tools in public service delivery. https://aa.ministry.et Broader Educational Context The 8th Grade Exit Exam serves as a critical academic milestone in Ethiopia’s educational system, marking the transition from primary to secondary school. The exam is standardized across the country and used to assess student readiness for the more demanding curriculum in higher grades. In recent years, Addis Ababa has seen improvements in both educational infrastructure and student performance metrics. However, disparities still exist between schools in well-resourced urban neighborhoods and those in underdeveloped or overcrowded districts. Educational experts have pointed out that while high pass rates are encouraging, there must also be a focus on quality of learning, student retention, and inclusive education—particularly for girls, students with disabilities, and those from economically disadvantaged backgrounds. Dr. Zellamo concluded by encouraging all stakeholders to use the momentum from this year’s success to double down on reforms aimed at improving teaching standards, school facilities, and equity in education. “The real measure of progress is not just how many pass, but how well we prepare our students for the future,” he added.

Ethiopia Inks $3 Billion Fertilizer Deal With Dangote to Curb Import Dependence

Ethiopia Inks $3 Billion Fertilizer Deal With Dangote to Curb Import Dependence ADDIS ABABA — Ethiopia is set to sign a $3 billion agreement with Nigerian billionaire Aliko Dangote to construct a large-scale fertilizer plant in the Somali Regional State, as the Horn of Africa nation seeks to reduce its reliance on imported agricultural inputs and stabilize local supply chains. The project, expected to break ground later this year in Gode, marks one of Ethiopia’s largest industrial deals with a private foreign investor. Prime Minister Abiy Ahmed confirmed the agreement would be formalized in mid-July. “This project will ensure that Ethiopia has sufficient fertilizer for the next three years,” Abiy said in a televised address. “More importantly, it will allow us to meet future demand with domestic production.” Addressing a Structural Supply Gap The deal comes amid mounting pressure on Ethiopia’s agricultural sector. Fertilizer shortages have disrupted planting seasons and exposed vulnerabilities in Ethiopia’s external supply chains, exacerbated by Red Sea shipping delays and broader geopolitical instability. According to the Ministry of Agriculture, only 40% of the required fertilizer for the 2025 Meher planting season had arrived by April. Ethiopia currently sources most of its fertilizer from suppliers in Morocco and Russia, but foreign currency shortages and logistical constraints have repeatedly delayed distribution. The proposed plant will manufacture urea and nitrogen-based fertilizers, targeting both domestic demand and export markets in East Africa, according to officials familiar with the plans. Strategic Location and Industrial Decentralization The choice of Gode—located near the Ethiopia–Djibouti logistics corridor—offers streamlined access to ports for both raw material imports and fertilizer exports. It also aligns with the federal government’s push to attract industrial investment into historically underserved regions. The government is investing heavily in infrastructure, energy, and road connectivity across eastern Ethiopia to support new manufacturing clusters. Gode has been identified as a priority zone under this initiative. Dangote Group Expands East African Footprint The deal reinforces Dangote Group’s long-term strategic positioning in East Africa, where it has operated a cement plant in Ethiopia’s Oromia region since 2015. The group is also active in petrochemicals, energy, and agribusiness across the continent. Dangote’s $2.5 billion fertilizer complex in Nigeria, launched in 2023, is the largest of its kind in Africa with an annual production capacity of 3 million metric tons. The Ethiopian facility is expected to mirror that capacity and may scale further depending on regional demand. Reform Agenda and Investor Confidence The announcement aligns with Ethiopia’s broader Homegrown Economic Reform II (HGER II) agenda, a government-led initiative aimed at liberalizing key sectors, modernizing agriculture, and attracting FDI. Recent policy developments supporting the reform framework include: Fuel subsidy removal to reflect international price movements Digital land registration rollout for improved land governance Knowledge partnerships with Morocco and China on agri-tech Formation of a national food reserve agency The agricultural sector accounts for roughly one-third of GDP and employs close to 70% of Ethiopia’s labor force. Ensuring fertilizer availability is central to improving productivity, reducing inflationary pressures on food prices, and enhancing rural incomes. The deal is expected to be closely watched by development finance institutions, regional trade partners, and agribusiness investors. If executed effectively, the project could shift Ethiopia from a fertilizer importer to a regional production hub, while insulating its economy from future commodity price swings. As Prime Minister Abiy positions the country for agro-industrial transformation, the Dangote plant may serve as both a symbol and a mechanism of Ethiopia’s ambition to rewrite its agricultural narrative—from dependency to domestic strength. 1 COMMENT Teshome Korme June 25, 2025 At 8:17 pm Very very very Very very very Comments are closed.

Ethiopia’s Government Officially Ends Fuel Subsidy: Prices to Follow Global Market Rates

Ethiopia’s Government Officially Ends Fuel Subsidy: Prices to Follow Global Market Rates Addis Ababa – June 21, 2025The Ethiopian government has officially announced the complete removal of its fuel subsidy, a policy shift set to recalibrate the country’s fuel pricing structure in line with international market rates. The Ministry of Trade and Regional Cooperation confirmed that the new directive, which has been in development for over a decade, marks a significant move toward liberalizing the domestic energy market. End of a Gradual Phase-Out The fuel subsidy, introduced to protect low-income households from global price volatility, had been undergoing gradual phase-out measures since 2022. The government initially planned to fully terminate the subsidy by June 2024, but mounting concerns over its impact on economically vulnerable populations led to its partial reinstatement in July 2024. Despite these adjustments, the economic burden of maintaining fuel subsidies—coupled with increasing incidents of cross-border fuel smuggling—forced the government’s hand. “The sharp price disparity between Ethiopia and neighboring countries made it lucrative for smugglers and harmful for state revenues,” the ministry noted. Implementation Timeline According to the statement: Gasoline and jet fuel subsidies were removed effective May 9, 2025. White diesel and all remaining petroleum product subsidies were lifted as of June 4, 2025. From these dates forward, domestic fuel prices are being pegged directly to global oil market trends, with regular adjustments to reflect international fluctuations. Government’s Rationale and Public Reaction Officials cite the need to stabilize the national economy, promote energy efficiency, and combat black-market activity as the driving forces behind the policy. “Continuing the subsidy was no longer economically or strategically viable,” said a senior official at the Ministry of Trade. “It distorted the market and invited corruption and illicit fuel trade.” However, the announcement comes amid rising public concern, exacerbated by widespread misinformation on social media that triggered panic buying and long queues at fuel stations earlier this week. The ministry urged citizens to remain calm, assuring that supply remains stable and that price adjustments will be transparent and gradual. Social Impact and Mitigation Measures While critics fear the move will lead to higher transportation and commodity costs, the government insists that social protection mechanisms are being developed to shield low-income citizens from disproportionate impact. Policy analysts suggest that this moment could also be a turning point for Ethiopia to diversify its energy sources, invest in public transportation, and encourage private sector participation in renewable energy. Looking Ahead As Ethiopia joins a growing list of countries opting to reduce or eliminate fuel subsidies, the full implications of this decision will unfold in the coming months. Economic experts say the success of the policy will depend heavily on the government’s ability to communicate clearly, ensure market stability, and implement safety nets for the most vulnerable.

‎Ethiopia Slashes Capital Thresholds for Foreign Investors

‎The Ethiopia Investment Board has lowered the capital requirements for foreign investors seeking to enter previously restricted sectors—such as the export, import, wholesale, and retail trades—by more than half, revising a directive issued less than eighteen months ago. ‎The amended directive, effective June 12, 2025, signals a recalibration of the country’s investment strategy amid slowing foreign capital inflows and rising calls for equitable treatment of local and international players. ‎The preamble of the earlier directive, in force from March 2024 until last week, had acknowledged a shift in policy allowing previously restricted sectors to open gradually to capable foreign investors. ‎The revised version goes further, stating that the Board, which is chaired by the Prime Minister, deems it necessary to introduce new revisions that reinforce investor confidence and facilitate the mobilization of additional foreign capital by creating, as far as practical, procedures that promote equal treatment of foreign and domestic investors and ensuring that transparent, simplified, and predictable procedures are adopted for all permit requirements.” ‎While the new directive retains provisions from the previous version permitting foreign investors to participate in the export of raw coffee, sesame seeds, pulses, oilseeds, khat, leather, poultry, and even live livestock—traditionally sensitive sectors—it introduces a notable shift in retail trade requirements. ‎Foreign investors can now participate in retail trade with a paid-up capital of USD 2.5 million—a significantly reduced threshold compared to earlier informal benchmarks. A due diligence report prepared by a recognized national or international verification agency detailing the investor’s integrity and capacity is another requirement. The directive also stresses that any non-cash asset contributed to the paid-up capital of the investment enterprise in accordance with this provision should be evaluated by a professional assigned by the Ethiopian Investment Commission (EIC). ‎The directive also allows for exceptions, putting the investment board to issue a decision on a case-by-case basis, particularly favoring reputable single-brand retailers with smaller capital. ‎Previously, foreign entrants with at least three years of trading history had to meet stringent turnover requirements. For instance, raw coffee exporters were required to generate at least USD 10 million annually, sesame exporters USD 5 million, oilseed and pulse traders USD one million, and those in leather, gum, or poultry needed at least USD 500,000. ‎The new directive lifts those trading history and turnover limitations entirely. ‎“Without prejudice to the requirements imposed by other laws in relation to minimum capital, competence, or standards, any foreign investor can engage in the export trade of raw coffee, oilseeds, khat, pulses, hides and skins, forest products, and poultry and livestock bought on the market,” it reads. However, it also stipulates that foreign investors must present a comprehensive due diligence report—prepared either internally or by a recognized national or international verification agency—confirming their integrity, financial capacity, and absence from sanctions or criminal watchlists before engaging in export trade of select commodities. ‎The directive emphasizes that these revisions aim to restore investor trust and attract more foreign capital by fostering an environment of fairness and clarity. EIC data shows that within the fourteen months the previous directive was in effect, just over 150 foreign investors—primarily from China and the UAE—formally expressed interest in newly liberalized sectors. ‎However, the Commission declined to specify how many of these companies have actually launched operations. ‎The amended directive also reaffirms institutional mandates, aiming to eliminate ambiguity in regulatory oversight. ‎“All appropriate bodies shall establish a comprehensive institutional framework to facilitate the implementation of this Directive,” it states. ‎Regarding wholesale and retail trade, the Ministry of Trade and Regional Integration is tasked with setting up an oversight structure to curb anti-competitive behavior and protect consumer rights. The EIC will receive foreign investment applications, ensure compliance, register businesses, issue permits, and coordinate implementation jointly with the Ministry. ‎Furthermore, a permanent joint committee—comprising the EIC, ministries of Trade, Industry, Revenue, Agriculture, as well as the Customs Commission, National Bank of Ethiopia, and other designated bodies—will monitor the directive’s implementation and evaluate whether its objectives are being met. The Board will appoint the chair of this committee.

Sovereign Wealth Fund Eyes Ports Abroad, Urges Foreign Ministry Backing

‎Ethiopian Investment Holdings (EIH) is positioning itself to pursue port investments beyond Ethiopia’s borders, with the sovereign wealth fund emphasizing the need for stronger collaboration with the Ministry of Foreign Affairs to navigate the political and diplomatic complexities entailed by the venture. ‎‎Speaking to officials during a recent consultative forum, DidimosGetachew (PhD), an investment advisor at EIH, said the institution is actively exploring strategic logistics projects including new ports and trade corridors. However, he cautioned that EIH cannot operate in isolation from Ethiopia’s foreign policy apparatus and its backing. ‎“EIH has the mandate to facilitate cross-border investment and engage in investments in foreign countries,” Didimos told The Reporter. “But when it comes to ports and strategic logistics infrastructure, this is not simply about economic calculations. These are investments that are deeply tied to politics and diplomacy. That’s why guidance from the Ministry of Foreign Affairs is essential.” He also stated that EIH is looking for investment opportunities that can bring about significant economic and social transformation beyond just building another port. “That’s why investments of this nature are heavily tied to politics and diplomatic relations, and therefore require close guidance from the Ministry of Foreign Affairs”. Economists have long cautioned that with over 95 percent of Ethiopia’s import and export trade flowing through congested ports in Djibouti, the country’s reliance on a single maritime route has become a bottleneck—both economically and strategically. The IMF and World Bank have repeatedly flagged Ethiopia’s high logistics costs, which exceed 25 percent of GDP, as a critical constraint to trade competitiveness. A quarterly economic profile published by the United Nations Development Program (UNDP) in April 2025 indicated that Ethiopia’s goods exports have the potential to reach USD 10 billion by the year 2030, with manufactured goods taking a predominant share, but warned thatmanufacturing remains constrained by the trifecta of available land, expensive capital, and complex logistics. Recent geopolitical developments further amplify the urgency. With new port projects underway in Berbera (Somaliland), Lamu (Kenya), and Eritrea’s Massawa and Assab, regional competition is heating up. Analysts argue that Ethiopia’s active presence or absence in these emerging logistics hubs will likely shape its trade access and geopolitical relevance for decades to come. However, according to the EIH advisor, the sovereign wealth fund’s interest in foreign ports is not driven by opportunism but by a long-term vision to secure Ethiopia’s economic competitiveness and regional integration. ‎“We are asking: What strategic opportunities exist for Ethiopia beyond its own borders? How can we position ourselves in regional logistics to trigger real economic and socio-political transformation?” he said. “These are not questions the Investment Holdings can answer alone.” Although the Foreign Ministry is an important piece of the puzzle, Didimos revealed the relationship between EIH and its officials has thus far been limited. “Over the past four years, the engagement between EIH and the Ministry has been limited. That must change,” he told The Reporter. ‎‎Didimos noted that while diplomatic groundwork has historically been the sole domain of the Ministry, emerging investment dynamics—especially in infrastructure—require a joint approach. “A lot of investment opportunities are opening up, and we, as EIH, must analyze and engage with these jointly with the Ministry,” he said. ‎The EIH advisor emphasized that economic analysis should follow, not precede, diplomatic groundwork. “Before any investment decision is made, diplomacy must come first. We need to ask: What kind of relationship do we have with the host country? What’s the political climate? What doors are open or closed diplomatically? That’s where the Ministry’s role is indispensable,” Didimos told The Reporter. ‎He clarified that EIH is not rushing into port deals, but initiating exploratory discussions that must mature into coordinated strategy. “What we’re doing now are initial discussions. The idea is to send a clear signal that this cannot be EIH’s work alone. We must act together,” said Didimos. “EIH has the mandate. The Ministry has the diplomatic leverage. Let’s align our efforts and bring about something transformative.” ‎‎Analysts emphasize that with Ethiopia’s landlocked status placing increasing pressure on logistics capacity and trade competitiveness, shifting towards foreign port investment could mark a significant pivot in the country’s economic strategy if backed by coherent diplomatic support.

Dashen Bank Unveils Secure Valuable Asset Deposit Service for Individuals and Institutions

Dashen Bank Unveils Secure Valuable Asset Deposit Service for Individuals and Institutions Dashen Bank has officially launched a secure valuable asset deposit service, offering its customers the ability to store high-value items—such as securities, gemstones, gold, precious metals, and important documents—in specialized safes and deposit boxes with top-tier security protocols. The new service, introduced by Dashen’s Treasury Management Division, represents a significant step in the bank’s ongoing mission to provide innovative, customer-focused financial solutions. During the announcement, Mr. Andualem Beliko, Director of Treasury Management at Dashen Bank, highlighted that the service was developed in response to specific requests from clients—especially those operating in the mining and trade sectors, where handling and securing high-value assets is a routine necessity. “This valuable asset deposit service is equipped with advanced, internationally recognized security technologies,” Mr. Andualem explained. “It ensures that our customers can store their assets with complete peace of mind. From passports and marriage certificates to gold bars and gemstones, customers now have a trusted place to keep their most valuable possessions.” The deposit service offers a range of box sizes to suit varying customer needs and asset volumes. Whether for personal use or institutional purposes, customers can select the size and type of safe deposit box that meets their requirements. Access to this service is available through select Dashen Bank branches and regional offices, with registration and verification processed at the bank’s head office. Customers utilizing this service will be issued a unique ID card that allows controlled and secure access. Beyond enhancing customer convenience and asset protection, Mr. Andualem noted that the service is expected to contribute positively to the bank’s revenue through annual rental fees, while simultaneously helping the bank reach new customer segments. “However,” he emphasized, “the true value lies in reinforcing our promise: to be a reliable custodian of our clients’ trust and property.” Dashen Bank is no stranger to innovation. It has previously led the market by launching digital platforms like the SuperApp, positioning itself as a pioneer in Ethiopia’s rapidly modernizing banking industry. This new asset deposit service aligns with its broader strategy to expand service offerings while prioritizing safety, efficiency, and personalization. The bank has called on individuals and businesses across Ethiopia to take advantage of the new offering. As economic activity expands and the need for asset protection becomes more urgent, Dashen Bank’s move is timely and strategically important. Looking ahead, the bank has announced its intention to roll out additional high-value services in the near future, aimed at meeting the evolving needs of its increasingly diverse and security-conscious clientele.

Ethiopia’s Forex Auction Sets Average Exchange Rate at 136.63 Birr/USD

Ethiopia’s Forex Auction Sets Average Exchange Rate at 136.63 Birr/USD This development comes as part of the central bank’s ongoing managed forex auction system aimed at addressing Ethiopia’s foreign currency shortages while ensuring fair and market-reflective pricing. The weighted average rate reflects the mean of all successful bids submitted by participating banks. According to the announcement, the NBE continues to implement periodic forex auctions in a bid to gradually align the official exchange rate with market conditions, improve transparency, and promote efficiency in foreign currency distribution. While the central bank did not disclose the total volume of currency traded in this round, the allocation to 11 banks signals a continued demand for hard currency amid a challenging macroeconomic environment marked by import pressures and limited foreign reserves. For more information and official updates, visit nbe.gov.et.