Ethiopia’s central bank, the National Bank of Ethiopia (#NBE), has recorded losses equivalent to $2.6 billion following the country’s shift from a fixed to a market-based foreign exchange regime in July 2024, according to audited financial statements cited by the Kenyan outlet The EastAfrican.
NBE said it incurred 407.1 billion birr in foreign exchange losses during the financial year ending June 30, 2025, largely due to the revaluation of its foreign currency assets and liabilities after the exchange rate realignment. Foreign exchange losses rose sharply to 445.23 billion birr, from 38.13 billion birr the previous year.
The surge pushed the National Bank of Ethiopia’s overall operating loss to 428.56 billion birr, up from 10.51 billion birr a year earlier, and drove the Bank into a negative equity position of 380 billion birr, raising concerns over its ability to continue as a going concern.
In its audited financial statements, the National Bank of Ethiopia said the losses were
Read more: https://addisstandard.com/?p=54706primarily attributable to unrealised net foreign exchange losses arising from the translation of the Bank’s foreign currency assets and liabilities following exchange rate realignment.
