IMF Extends CBE Compliance Deadline for Net Open Position Due to Lower FX Receipts

As reported by Capital Newspaper

Summary

• The International Monetary Fund agreed to extend the deadline for the Commercial Bank of Ethiopia to reduce its on-balance sheet net open position (NOP) by at least half. The revised deadline is end of March 2026, moved from end of December 2025.
• The extension follows a larger-than-anticipated NOP in Q1 of Ethiopia's 2025/26 fiscal year, caused by lower-than-expected foreign exchange receipts, primarily from remittances, and higher demand for foreign currency from the private sector. The NBE and CBE agreed on a revised reduction plan and initiated weekly monitoring consultations. CBE launched new diaspora-focused initiatives, including targeted remittance campaigns and customized loan products, to boost FX inflows.
• For BirrValue users, CBE's NOP position affects how much foreign exchange the bank can hold and deploy. The compliance plan and diaspora campaigns signal that CBE is actively working to improve FX availability. Compare CBE's rates against Awash, Dashen, and Abyssinia on [BirrValue](/banks) before converting or sending money.