NBE Officials Detail Impact of July 2024 Monetary Policy Reforms

Central Bank research director Habtamu Worku detailed the outcomes of the July 2024 monetary policy reforms, marking a shift to a market-based exchange rate. The reforms removed import bans and surrender requirements, establishing full current-account convertibility while increasing exporter retention to 70%. Official data indicates balance-of-payments receipts exceeded $37 billion, with foreign direct investment reaching $4.4 billion. Officials highlighted that the parallel-market premium significantly narrowed, dropping from over 100% to less than 12%. These policy changes aim to stabilize the foreign exchange market and improve transparency in the financial sector.