The National Bank of Ethiopia has announced a special foreign-exchange allocation of $175 million to a state-owned primary importer of fuel and related products.
The allocation aims to address upcoming fuel-related import payments by the Ethiopian Petroleum Supply Enterprise, according to a central bank statement. The Horn of Africa nation spends about $4 billion annually on such imports, Prime Minister Abiy Ahmed said in June.
Ethiopia, which has struggled with dollar shortages, is due to receive an International Monetary Fund program payout of about $345 million in addition to a $1 billion disbursement announced in July.
The nation liberalized its foreign-exchange regime in July, a step which depreciated its currency by about 50% to a level similar to the street value. That depreciation has helped to draw more foreign exchange to official channels. In August, the central bank conducted its first-ever special auction to boost banks’ dollar holdings.
No Comment Found.