The newly appointed governor of the National Bank of Ethiopia (NBE), Mamo Mihretu, has outlined his priorities to revive the country’s economy. The governor’s first priority will be to stabilize prices and the foreign currency market through monetary mechanisms and the second priority is to achieve financial stability. The central bank’s ability to control inflation has been hindered by the 30% inflation rate that has persisted for over a year, though the governor is optimistic about the 7.3% economic growth expected this year. The rise in investments in Treasury bills, increasing loans by commercial banks, and the growing deposit base are all positive signs for the economy.
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Ethiopia: Mamo Mihretu appointed NBE Governor
Ethiopia has appointed Mamo Mihretu as the new governor of the country’s central bank. Mihretu, who is currently the governor of the National Bank of Ethiopia, will take over from Yinager Dessie, who has been in the role since 2013. Mihretu’s appointment comes as the country’s economy is facing significant challenges, including high inflation, a devalued currency and a large trade deficit.
Categories: Regulators -
Wide-ranging interview on financial sector reform in Ethiopia
On entry of foreign banks: Local banks in Ethiopia are worried about competition from foreign banks, but the National Bank of Ethiopia will open the sector gradually, allowing only a limited number of foreign banks and limiting the number of branches and management involvement to protect local banks. The big international banks are not expected to enter the market as the Ethiopian market is considered too small for them. Most of the foreign banks that will enter will be African and all laws and restrictions applied to local banks will also apply to foreign banks which may discourage foreign banks from entering.