IMF Says Foreign Exchange Reforms Do Not Mean Opening Ethiopia's Capital Account

The International Monetary Fund (IMF) has clarified that Ethiopia's foreign exchange policy reforms do not constitute a full opening of the country's capital account. According to the IMF, wider financial liberalisation should wait until Ethiopia is adequately prepared to manage the risks associated with freer cross-border capital movements. The organization stated that opening the capital account is currently not under consideration within the existing reform programme. Instead, the ongoing economic reforms remain strictly focused on gradually removing current-account restrictions. The IMF emphasized that any eventual capital account opening must be well-sequenced and based on specific economic conditions. Furthermore, it cautioned Ethiopian authorities that capital-flow measures should never be used as a substitute for broader and necessary macroeconomic policy adjustments.