Addis Ababa, October 3, 2024 – The National Bank of Ethiopia (NBE) has announced a major allocation of $175 million to the foreign exchange market, aimed at supporting fuel-related import payments over the coming months. This move is expected to help alleviate pressure on foreign exchange needs, particularly for the Ethiopian Petroleum Supply Enterprise (EPSE), the nation’s primary importer of fuel and related products.

Governor Mamo Mihretu highlighted that Ethiopia’s foreign exchange reform has delivered promising results, with a marked reduction in the parallel market premium from nearly 100% to below 5%. This improvement has been driven by a strong supply response in exports and remittances, as well as increased availability of foreign exchange for businesses.

The $175 million allocation is part of a broader strategy designed to address foreign exchange demands in critical sectors, particularly fuel imports, while ensuring broader access for other economic areas. The governor also mentioned that the NBE will continue periodic foreign exchange allocations throughout the year depending on market conditions, in line with Ethiopia’s new foreign exchange regime.

This measure reflects the government’s ongoing efforts to stabilize the foreign exchange market and foster a favorable environment for importers and businesses across Ethiopia.