Ethiopia’s Central Bank Holds Rate at 16%
The National Bank of Ethiopia held its policy rate at 16% on 3 November, and the IMF moved US$200 million forward to help pay for dearer fuel. The post Ethiopia’s Central Bank Holds Rate at 16% appeared first on The Rio Times .
Ethiopia's central bank maintained its main interest rate at 16% on Tuesday, November 3, 2026, following a one percentage point increase in July. The National Bank of Ethiopia (NBE) has allowed the birr, the national currency, to float since July 2024, while the International Monetary Fund (IMF) has provided additional funds to cover rising fuel costs.
This development is significant for the United States as Ethiopia is a major coffee exporter and a substantial borrower from the IMF. The NBE has adjusted its 2024 foreign exchange rules through Directive FXD/04/2026. The IMF urges the authorities to develop an interbank market and enforce net open foreign-exchange position limits.
Importers and exporters dealing with Ethiopia should compare bank quotes, as retail rates may differ from official ones. The IMF's program is the main anchor for investors, with each review releasing money only if reform targets are met. The impact of a wider fuel bill on Ethiopia's import bill and future IMF reviews remains uncertain.
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