News

Inflation Hits 15.3 Percent in July as Food and Fuel Keep Prices Hot

Annual inflation accelerated to 15.3 percent in July 2026, up from 13.7 percent a year earlier, according to the Ethiopian Statistical Service. Food inflation reached 15.7 percent and non-food inflation stood at 14.8 percent.

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Two Years In: Ethiopia's FX Auctions Have Injected Dollars but Demand Still Runs Ahead

Ethiopia's foreign exchange auction programme marked two years in August 2026. Since the first sale in August 2024, 25 regular rounds have helped set a market reference for the birr, but bids have often exceeded the dollars on offer.

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NBE Floods the Market With $500 Million and the Birr Clears Near 160.21 per Dollar

On August 20, 2026, the National Bank of Ethiopia sold $500 million in a special foreign exchange auction. The weighted average successful bid rate was 160.2144 birr per dollar, down about 1.59 birr from the regular auction on August 12.

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Gold and Coffee Mask a Weaker Export Basket as Ethiopia Sets a $13.4 Billion Target

Ethiopia earned a record $11.2 billion from exports in fiscal year 2025/26, but much of the growth came from gold and coffee while oilseeds and pulses earned less foreign currency despite higher volumes.

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The Door Is Open, but No Foreign Bank Has Walked In Yet

More than a year after Ethiopia opened its banking sector to foreign investors under Proclamation No. 1360/2024, no major foreign commercial bank has obtained a full banking license or completed a takeover as of mid-2026.

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Bank of Abyssinia Goes Live on the ESX as Shares Surge on Debut Day

Bank of Abyssinia began trading on the Main Board of the Ethiopian Securities Exchange on July 28, 2026, listing more than 17.48 million shares at a reference price of 1,600 birr under the ticker BOAX.

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Credit Cap Is Gone, Policy Rate Is 16 Percent: NBE Shifts to Interest-Rate-Led Policy

On July 13, 2026, the National Bank of Ethiopia removed the commercial bank credit growth cap, raised its policy rate by one percentage point to 16 percent, cut the FX commission to 1.5 percent, and reduced export surrender requirements from 50 to 30 percent.

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Ethiopia Closes the Books on a Record $11.2 Billion Export Year

Export earnings reached $11.195 billion in fiscal year 2025/26, beating the $9.4 billion target by 19 percent, Trade Minister Kassahun Gofe said at a sector forum in Hawassa on July 11, 2026.

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IMF to Ethiopia: Keep the Brakes On and Be Ready to Tighten Again

In its fifth review documents, the IMF advised the National Bank of Ethiopia to keep a tight monetary policy stance and to be ready for further tightening if inflation pressures return, after inflation climbed back into double digits in the middle of 2026.

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It Is Official: IMF Board Approves $464 Million for Ethiopia in Fifth ECF Review

On July 1, 2026, the IMF Executive Board completed the fifth review of Ethiopia's four-year Extended Credit Facility, allowing the country to draw about $464 million (SDR 342.05 million) and bringing total support under the program to roughly $2.65 billion.

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Inflation Rebounds, So the Credit Cap Stays: What to Expect From the NBE

Ahead of its late-June meeting, the National Bank of Ethiopia's Monetary Policy Committee was expected to keep the bank credit growth cap in place as inflation rebounded, even as money market interest rates eased.

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Abay Bank Rings the Bell: Fifth Company to Trade on Ethiopia's Stock Exchange

Abay Bank began trading on the Main Market of the Ethiopian Securities Exchange on June 25, 2026, becoming the fifth company to list. Its shares debuted at 1,800 birr each through a listing by introduction.

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Inflation Is Back: Ethiopia Jumps to 13.4 Percent and Food Prices Are to Blame

Annual inflation rose to 13.4 percent in May 2026, up from 11.7 percent in April and 9.4 percent in March, as food prices increased for a third straight month. The reading reverses several months of progress toward single-digit inflation.

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2.34 Trillion Birr: Inside Ethiopia's Record Budget and the War Costs Behind It

Finance Minister Ahmed Shide projected spending of about 2.34 trillion birr ($14.69 billion) for the 2026/27 fiscal year, up from 1.92 trillion birr, driven largely by Middle East war fuel costs. The budget deficit is seen at 1.4 percent of GDP.

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Ethiopia Smashes Export Records: $8.7 Billion in 10 Months and Still Climbing

Export revenue reached about $8.7 billion in the first ten months of the 2025/26 fiscal year, and the government expects to earn $10.5 billion by year end, helped by strong coffee and gold prices.

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The Next Global Economic Hub? Ethiopia's Finance Minister Makes the Case

Finance Minister Ahmed Shide said in June 2026 that Ethiopia is increasingly viewed as a potential global economic hub following the successful rollout of its comprehensive macroeconomic reform program.

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IMF Just Cleared $468 Million for Ethiopia: Here Is What It Means for the Birr

On June 3, 2026, IMF staff and Ethiopian authorities reached a staff-level agreement on the fifth review of the four-year $3.4 billion Extended Credit Facility. The deal will release about $468 million once approved by the IMF Executive Board.

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Awash Bank Sets the Stock Exchange Buzzing as Three More Giants Line Up to List

Awash Bank, Ethiopia's largest private bank, became the first company on the Ethiopian Securities Exchange main market, and trading momentum in May and June 2026 set the stage for three more companies to list in the coming weeks.

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Ethiopia Just Rewrote Its Import Rules: The Franco Valuta Shake-Up Explained

A new Import on Franco Valuta Directive, No. FVD/01/2026, took effect on May 29, 2026. It sets a legal framework for imports financed with foreign currency sourced outside Ethiopia's domestic banking system.

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