IMF reaches staff-level agreement on first review of ECF for Ethiopia

As reported by IMF

Summary

• The IMF and Ethiopian authorities have reached a staff-level agreement on the first review of Ethiopia's Extended Credit Facility program, indicating that the country has met the program's performance targets.
• Program performance was stronger than anticipated, with Ethiopia making progress on key reform areas including fiscal consolidation, exchange rate flexibility, and monetary policy modernization.
• Forex reserves improved during the review period, reflecting the impact of the more flexible exchange rate in attracting remittances and improving export competitiveness.
• The staff-level agreement is subject to approval by the IMF Executive Board, which would trigger the release of the next tranche of program financing.
• The positive first review provides momentum for Ethiopia's reform agenda and strengthens the case for debt restructuring with external creditors.
• BirrValue review: Improved reserves support FX stability. Compare bank rates on BirrValue—reform progress typically correlates with more predictable official FX availability.