FORTUNE+ VIDEO SPONSORED CONTENTS ADVERTORIALS FORTUNE AUDIO Fortune Careers TRADE AFRICA Election 2026 New TIME REMAINING UNTIL ETHIOPIA’S NATIONAL ELECTION 0Days 0Hours 0Minutes 0Seconds

Fortune Logo

Governor Mamo Champions Interbank Open Market Operations, Targets Price Stability

Jul 9 , 2024

Central Bank Governor Mamo Mihretu will launch into two days a market operation for the banks to trade their liquidities, formalising what was an ed hoc exchange between them. Industry observers see this latest move as an official shift towards an interest-based monetary policy framework, and a beginning of a vibrant financial market.

The Governor declared today, gathering presidents of all the banks, that the National Bank of Ethiopia (NBE) policy interest rate of 15pc as the anchor of its monetary policy formulation, three percentage points lower than what it has been lending commercial banks under liquidity strain. Overnight lending and deposit facilities were laid out by the Governor as an instrument to help the banks deal with short-term liquidity at an interest rate three percent lower than its policy interest rate.

However, this interest does not apply to the interest that banks offer to their depositors or borrowers. There would also be a review of the saving rate they pay to depositors.

Mamo also announced biweekly auctions by the central bank of securities to either mop up excess money from the economy or inject into it depending on governing circumstances.

The Governor also disclosed a vibrant interbank lending market facilitated through NBE’s central security depository system.

“It's a historic shift in monetary policymaking in the country,” said the Governor.

The Governor will conven another meeting with treasurers of all the commercial banks on Wednesday.

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

Raising Interest Rates Won't Stabilise African Inflation

African economies began this year facing no shortage of challenges, including lower g...

Global Health Reform Must Bolster Innovation

Despite delivering extraordinary gains in the fight against child mortality and disea...

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

The Budget Bill Asks the Most from Citizens with the Least Slack

Jun 20 , 2026

When Parliament takes up the appropriation bill, federal legislators will receive a d...

Logistics Reform Should Deliver More Than Market Entry by Foreign Capital

Jun 13 , 2026

The recent policy decision to fully open freight forwarding to foreign capital may be...

The Elections Offered Order at the Centre, Silence at the Edges

Jun 6 , 2026

For a political veteran as controversial as Getachew Reda, last week's national elect...

Mistaking Development Theatre for Public Trust Has a Cost

May 30 , 2026

Tomorrow, millions of Ethiopians are expected to vote in the seventh national electio...

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

Prevention Starts Years Before the First Diagnosis

I often hear people say, “I'm only in my twenties,” or “I'm still in my thirtie...

The Cost of a Culture That Doesn't Read

In Ethiopia, one of the most surprising statements heard in everyday conversation is...

Life Matters

A Cup of Juice, A Long Day, an Uncomfortable Realisation

Most of us love our children fiercely. It is perhaps one of the most universal human...

The Things We Can't Control

Lately, two thoughts have occupied my mind. At first glance, they seem unrelated. One is about comebacks. The other is about how parents vie...