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Call Made for Ethiopian Bond Exchange

The establishment of a bond exchange market in Ethiopia was called for by the third macro economic analysis conducted by Access Capital. 

An Ethiopian Bond Exchange can help standardize requirements and practices associated with the issue of bonds as well as providing a central depository for trading, disclosing and registering bond issues by both private and public stakeholders explained the Access report.

A market as part of the bond exchange will play a significant role in expanding interest in bond purchase by improving investor confidence for easy exchange or liquidation of bonds at fair prices according to the review.  

A bond exchange market can also offer an alternative for share companies limited to raising funds from the public directly noted the report.

The report organized by Access capital also addressed to domestic and policy related sources for inflation.The Inflation rate in Ethiopia is the highest in Africa and second highest in the world claimed the report.

Internal policy adjustments can help to resolve inflationary issues according to the report which argues against the official view that inflation in Ethiopia is primarily due to external factors imported from an unstable world economy.

It is to be remembered that annual inflation rate in Ethiopia fell to 35.9% in December following a decline in some food costs reported the Ethiopian Central Statistical Agency.

Prices increased by 1.7% during December with food prices climbing by just 0.2% due to a decrease in the price of some pulses and cereals said the Agency.

The inflation rate could fall under 10% by June following reduced lending by the National Bank and annual crop harvests reaching the market according to Access Capital.

Source: Capital