Ethiopia has started issuing licenses for independent foreign exchange bureaus as part of its financial sector liberalization plan.
This follows the recent free float of the local birr currency last month.
After floating its currency on July 29, Ethiopia secured a $3.4 billion, four-year program from the IMF, enabling a long-overdue debt restructuring and supporting its economic reforms.
The forex bureaus’ launch is part of the National Bank’s strategy to transform Ethiopia’s financial sector, aiming for growth and modernization, stated central bank governor Mamo Mihretu.
By licensing FX bureaus, Ethiopia takes a significant step toward aligning its financial sector with global standards, said Governor Mamo, signaling increased openness and best practices.
Facing high inflation and foreign currency shortages, Ethiopia defaulted on its debt last year.
Talks with the IMF continue for a new program after a 2019 deal was disrupted by regional conflict.
