Ethiopia Frees Its Currency to Lure Investors, Spur Growth

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Ethiopia Frees Its Currency to Lure Investors, Spur Growth
National Bank Of EthiopiaInternational Monetary FundEthiopia
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(Bloomberg) -- Ethiopia allowed its currency to trade freely in a bid to unshackle eastern Africa’s largest economy, lure investors and entice lenders...

-- Ethiopia allowed its currency to trade freely in a bid to unshackle eastern Africa’s largest economy, lure investors and entice lenders including the International Monetary Fund to provide a new financing program .The National Bank of Ethiopia permitted banks to buy and sell foreign currency at freely negotiated rates, according to a directive on its website.

Official bilateral creditors this month granted financing assurances to the Horn of Africa nation to help fast-track approval of a new loan by the IMF board. The guarantees mean that creditors, such as the Paris Club and China, have provided certainty that they will restructure their loans to Ethiopia in a way that’s consistent with the fund’s program.The IMF’s board is expected to discuss Ethiopia’s request for a new financing program on Monday.Ethiopia has been slowly opening up its economy.

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