The National Bank of Ethiopia (NBE) plans to exit the gold purchasing and export market by December 2026, ending its monopoly and opening the sector to private banks, according to the IMF’s Fourth Review. This shift follows sustained financial losses and market distortions attributed to NBE’s premium-based gold purchases.
Key Takeaways:
Policy change: NBE will cease gold market operations by end-December 2026.
Market entry: Private banks will be permitted to buy gold domestically post-exit.
Cost issue: NBE’s prior 15 % premium above international prices led to losses and balance-sheet strain.
Why It Matters:
For the banking and mining sectors, this marks a significant liberalization in Ethiopia’s gold value chain, potentially increasing market efficiency and profitability for private institutions. It also signals a shift away from central-bank direct commodity interventions toward a commercial market model, which could affect gold supply reliability, pricing dynamics, and competitive positioning of financial firms.