IMF outlines Ethiopia's National Bank gold market exit and forex reforms
via The Reporter Ethiopia3 min read
The International Monetary Fund's fifth review of its program with Ethiopia highlights a policy shift regarding the National Bank of Ethiopia's NBE role in gold purchases and foreign exchange sales. Contrary to previous recommendations for an immediate exit, the IMF now states that the NBE's withdrawal from gold purchases will be gradual, acknowledging the significant liquidity injections these purchases create, particularly for the Commercial Bank of Ethiopia. The NBE plans to discontinue premium payments to gold miners by September 2026, coinciding with its recapitalization plan, and will develop a long-term exit strategy from the gold market by December 2026. This phased approach is linked to concerns about the parallel forex market. The IMF report also notes that chartered flights transport raw gold to Dubai, the primary refiner and importer of Ethiopian gold. The NBE spent approximately 350 billion Birr on gold purchases in 2025/26, more than double the previous year, and uses gold exports and forex auctions to manage liquidity and stabilize the forex market. The report also indicates strong export performance in the first half of 2025/26, driven by gold and coffee, which is expected to help narrow the goods trade deficit.
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This summary was AI-generated from a story originally published by The Reporter Ethiopia.
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