The International Monetary Fund (IMF) has confirmed that it has reached a preliminary agreement to provide Ethiopia a $3.4 billion extended credit facility over the coming four years.
In a statement released by the IMF over the weekend, under the terms of the agreement, Ethiopia will receive an initial disbursement of approximately $345 million once the IMF’s Executive Board officially approves the deal.
This financial support is aimed at helping Ethiopia implement its indigenous economic reform program, which includes a shift toward a market-based foreign exchange rate.
“Ethiopia’s economic reform, particularly the adoption of a market-based foreign exchange transaction rate, is showing promising results,” the IMF stated.
The implementation of this system has notably reduced the gap between the parallel and official foreign exchange markets.
Ethiopia initiated its market-based foreign exchange system in July of last year as part of broader economic reforms aimed at stabilizing the economy and promoting sustainable growth.
“Ethiopia’s ongoing reforms are expected to help Ethiopia restore macroeconomic stability, secure foreign exchange supply, and support sustainable economic growth.
MG/as/APA