Foreign exchange inflows into Ethiopia surged to an all-time high of $32 billion over the past 12 months, according to the National Bank of Ethiopia (NBE), which credited the spike to the country’s sweeping macroeconomic reforms launched in July 2024.

The figure, up 33% from the previous year, was released as the central bank marked the one-year anniversary of a historic policy overhaul aimed at liberalizing the exchange rate, modernizing monetary policy, and opening the financial sector to competition and digitization.

The NBE said the surge in hard currency inflows stemmed from broad-based gains across exports, remittances, and foreign investment. Goods exports reached $8.3 billion, while service exports brought in $8.5 billion. Private transfers, mostly remittances, added $7.1 billion to the total, alongside $3.9 billion in foreign direct investment.

The NBE’s decision to shift to a market-based exchange rate regime was among the most consequential changes under the reform program. Along with easing surrender requirements and allowing exporters to retain more of their earnings, the reforms improved liquidity and transparency in the foreign currency market.

Average daily foreign currency sales by banks to businesses have more than doubled, climbing to $25 million a day from $11 million at the start of the reform period. Monthly sales are now averaging $500 million, nearly twice the volume recorded a year ago.

The strong inflows have helped finance $19 billion worth of goods imports and $6.7 billion in services, while also covering $1.4 billion in debt payments. The central bank also highlighted broader progress across the financial system. Annual inflation dropped to 13.9% in June 2025 from 20% a year earlier.

On the financial sector front, total deposits climbed 41% to 3.5 trillion Birr, while domestic credit rose 22% to reach Birr 3.4 trillion. Key financial health indicators, such as the non-performing loan ratio (3.9%) and capital adequacy (17.3%), remain within regulatory thresholds.

The NBE said the next phase of reform will focus on deepening financial markets, reducing inflation to single digits, and expanding access to foreign currency for businesses and individuals. Planned initiatives include welcoming foreign banks, strengthening the capital market infrastructure, and advancing consumer protection.