FORTUNE+ VIDEO SPONSORED CONTENTS ADVERTORIALS FORTUNE AUDIO Fortune Careers New TRADE AFRICA New

Fortune Logo

Ethiopia's Central Bank Dips a Toe in the Open Market Waters

Jul 11 , 2024

In a historic move to manage liquidity within the banking system, the National Bank of Ethiopia (NBE) held its first-ever open market operation (OMO) on July 11, 2024. The auction drew notable interest from the financial sector, with 16 bidders submitting nearly 20 billion Br.

The central bank accepted the total amount of bids, reflecting the banking industry's robust engagement with this new monetary policy tool.

The NBE's foray into OMOs is seen as a strategic measure to control the money supply, stabilise the financial system, and address liquidity imbalances. Analysts have stated the importance of such initiatives in maintaining economic stability, especially in a dynamic and evolving market environment like Ethiopia's.

The inaugural auction involved a two-week deposit-taking operation, attracting substantial interest from financial institutions. According to the official announcement, the total amount of bids submitted by participants reached an impressive 19.970 billion Br. This level of engagement displayed the broad spectrum of financial entities eager to participate in the central bank's liquidity management framework.

The fixed interest rate for this operation was set at 15pc, providing a competitive return for the participating institutions.

The operation's start date coincided with the auction date, July 11, 2024, and the maturity date was scheduled for July 24, ensuring a two-week duration for the deposits.

Put your comments here

N.B: A submit button will appear once you fill out all the required fields.



Related Posts

Share This Post
Linkedin
Google+


Most read

Latest News

Editor's pick

Commentaries

Growth Mirage Gives Way to Rising Poverty

The World Bank's latest brief on poverty and equity in, released this month, paints a...

Why Do Prospective Investors Look the Other Way While Bank Profits Surge?

In the domestic banking industry, earnings per share (EPS) have emerged as a potent b...

Fineline

Leaders of the National . . .

Leaders of the National Election Board are in a charm offensive mood, of a sort. Last week, they organised a rare tour for members of the me...

When the country’s most. . .

When the country's most senior diplomats and envoys return back to their posts after two-week debriefings, they leave behind a point or two...

Editorial

Official Narratives Preach Recovery. People Don't Feel It

Oct 18 , 2025

The political establishment, notably the ruling party and its top brass, has become p...

The Human Flight a Failure of Political Imagination, Not a Mere Economic Policy

Oct 11 , 2025

Ladislas Farago, a roving Associated Press (AP) correspondent, arrived in Ethiopia in...

Central Bank Loosens Credit Reins But Stops Short of Bold Overhaul

Oct 4 , 2025

Eyob Tekalegn (PhD) had been in the Governor's chair for only weeks when, on Septembe...

Exam Policy Fails the Test of Justice, Deepening Inequality, Disillusion

Sep 27 , 2025

Four years into an experiment with “shock therapy” in education, the national moo...

Gallery

Parliament Approves New Cabinet Members

Oct 6 , 2021

Parliament Approves New Cabinet, Incorporates Opposition Leaders Lawmakers have approved today the nominations of 22 ministers, including three opposition leaders. Two MPs have voted against, while 12 abstained...

2020 in Posterity

Jan 5 , 2021

TIGRAY VOTES DESPITE "NULL & VOID" THREAT

Sep 9 , 2020

IN-PICTURE: LAUREATE'S RECEPTION  

Dec 14 , 2019

PM Abiy Ahmed (PhD) at a Gala Dinner Called for the Awarding of the Félix Houphouët-Boigny Peace Prize

May 6 , 2019

Faces, Voices of Addis Abeba

Apr 26 , 2019

Sunday With Eden

Luxury of the Ordinary

A few weeks ago, I stood before a shop window in Addis Abeba, staring at a child's outfit, simple trousers and a shirt priced at 7,000 Br. F...

The Power of Staying Unexplainable

There's a version of us that lives in our parents' minds, the child they raised, frozen in time no matter how old we get. Another version ex...

Life Matters

The Price of Paying Right

It's strange how something as ordinary as paying for groceries can spark a lesson in how fractured Ethiopia's digital payment system remains...

The Savior Complex, When Helping Hurts

I have this one friend who absolutely amazes me. She's fiercely loyal, always trying to help, and practic...