• IMF extends deadline for Commercial Bank of Ethiopia (CBE) to cut net open position (NOP) to March 2026 from end-2025.

• CBE must reduce on-balance sheet NOP by at least 50 % under extended compliance timeframe.

• CBE’s short FX position worsened to about -$500 m from -$200 m year-on-year.

• National Bank of Ethiopia (NBE) and CBE hold weekly consultations on revised NOP plan.

• CBE launches diaspora remittance campaigns and tailored loan products to boost FX inflows.

• Asset Quality Review of CBE lending portfolio due by end-June 2026.

• NBE’s updated NOP directive sets FX exposure limit at ±18 % of a bank’s Tier 1 capital.

Why it matters?
Ethiopia’s largest bank must meet IMF-agreed FX risk limits by March 2026, reflecting weaker remittances and private sector FX demand. Progress influences foreign exchange market functioning and CBE balance sheet risk compliance.

• Ethiopian government plans new excise taxes on alcohol, tobacco, fuel, and vehicles under IMF-linked fiscal reforms. 

• Broad fuel subsidies are to be phased out as part of the tax changes. 

• Digital excise stamp system to be strengthened for tax collection (vehicle, alcohol, tobacco). 

• Vehicle circulation taxes will be introduced under the new tax regime. 

• Value-added tax and excise on fuel are included in the proposed tax package. 

• Reforms form part of broader measures to expand the fiscal revenue base. 

Why it matters?
New tax measures on fuel, vehicles, alcohol, and tobacco adjust Ethiopia’s revenue structure and fiscal policy. Digital excise systems affect tax administration and collection efficiency.