Ethiopia will phase out the premium paid to artisanal gold miners and allow private banks to purchase gold directly, as authorities move to curb balance-sheet risks and reduce distortions created by the central bank’s heavy involvement in the market, the International Monetary Fund said.
In its Fourth Review under the Extended Credit Facility, released on January 30, 2026, the IMF said the reforms mark a decisive shift away from the dominant role played by the National Bank of Ethiopia in gold trading, following an exceptional surge in officially recorded exports.
Gold exports jumped sharply from just over four metric tons in 2023/24 to nearly 39 metric tons in 2024/25, buoyed by record international prices and a steep rise in export volumes. But on Monday, the precious metal plunged as much as 10 percent to briefly trade around $4,400 an ounce, after a rally that took it to nearly $5,600 in January.
The multilateral lender also noted that part of the increase reflects gold previously sold through informal channels now being captured in official statistics, alongside the release of accumulated inventories.
The surge helped narrow Africa’s second-most populous nation’s current account deficit to 1.1 percent of GDP in 2024/25 from 2.9 percent a year earlier and supported an increase in gross international reserves. However, the central bank’s direct role in gold trading came at a significant cost.
According to its annual report, the National Bank of Ethiopia recorded 57 billion birr in losses from gold sales and write-downs of gold inventories. These losses, combined with unrealised foreign-exchange revaluation effects following the country’s shift to a more market-based exchange-rate regime in July 2024, underscore the risks of central bank participation in commodity markets.
While gold trading generated substantial operational income, the IMF said maintaining above-market premiums and monopolised purchase channels distorted price signals, encouraged arbitrage, and complicated reserve management.
Under the planned reforms, the premium paid above international gold prices will be gradually eliminated, and private banks will be authorised to buy gold directly from miners. A detailed implementation roadmap is expected by end-March 2026, informed by a dedicated study of Ethiopia’s gold market.
During the transition, the central bank will strengthen quality control by expanding and upgrading gold testing procedures across all purchase sites. The NBE will also prepare a long-term exit strategy from direct gold market participation by end-December 2026, taking into account implications for reserve accumulation and external stability.
The IMF said normalising gold pricing and widening private-sector participation should help sustain export gains while reducing market distortions and limiting the central bank’s exposure to commodity price volatility.
Technical assistance has focused on improving the recording of gold transactions, reducing errors and omissions in the balance of payments, and aligning Ethiopia’s external sector statistics with international standards, the Fund added.
