Ethiopia allocates $175 million for fuel imports amid dollar shortage

The National Bank of Ethiopia has allocated $175 million in foreign exchange to the Ethiopian Petroleum Supply Enterprise to cover fuel import payments.

Ethiopia, which spends $4 billion annually on fuel imports, faces severe dollar shortages due to the COVID-19 pandemic and a two-year civil war.

The country, operating under a managed floating exchange rate system, devalued its currency by 50% in July 2023 to attract more foreign exchange.

Ethiopia is also set to receive $345 million from the IMF, part of broader efforts to secure over $10 billion in funding and restructure its debt.