The National Bank of Ethiopia (NBE) has released $175 million into the economy to prevent a foreign currency crisis related to upcoming fuel-related payments. The funds aim to safeguard the economic gains from IMF-supported financial reforms. The NBE mentioned that the money would support the Ethiopian Petroleum Supply Enterprise (EPSE) in meeting its foreign exchange requirements for fuel import payments. The injection of funds aligns with Ethiopia’s recent foreign exchange reforms, showing positive results. The government plans to address all fuel-related foreign exchange payments for the year, ensuring stability and availability of foreign currency for all sectors. Prime Minister Abiy Ahmed’s efforts to attract foreign investment have led to interest from companies like Kenya’s Equity and KCB banks. In response to pressure from international financial institutions, Ethiopia implemented a flexible exchange rate regime supported by the IMF, aiming to stabilize the economy and secure funding for reforms. Despite facing challenges, Ethiopia seeks to maintain macroeconomic stability and improve living standards with assistance from international partners.
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