The National Bank of Ethiopia (NBE) has unveiled plans to modernize the government treasury bill (T-bill) system, aiming to make these financial instruments more accessible to citizens and investors. This initiative is part of the NBE’s ongoing efforts to enhance transparency, efficiency, and competitiveness within Ethiopia’s financial markets.

The announcement was made during a ceremony where the Ethiopian Capital Market Authority (ECMA) granted licenses to five new capital market service companies. NBE Governor Mamo Mihretu stated that the modernization would offer citizens and investors additional investment options, encourage a savings culture, and support economic growth.

The new system is designed to create a transparent and efficient framework for T-bill transactions, aligned with international best practices. It is also part of broader monetary policy reforms, including transitioning to an interest rate system and promoting open market operations to stabilize inflation and enhance financial inclusion.

Since 2019, financial institutions have been allowed to buy T-bills through auctions, breaking from a system previously dominated by public institutions. The new framework aims to democratize access to T-bills, fostering a more competitive financial market and providing secure investment opportunities for individuals while supporting government funding needs.

Source: Capital Ethiopia