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.