• 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.