In a move designed to bolster the security and stability of the Ethiopian financial sector, the National Bank of Ethiopia (NBE) announced a series of revisions to its regulatory framework. Accordingly, it revised five of its directives.
In the upcoming fiscal year, the National Bank of Ethiopia (NBE) is expected to revise its policy rate, commonly referred to as the National Bank Rate (NBR). The current rate, set at 15 percent, was established at the start of the fiscal year and is part of the NBE’s shift to an interest-rate-based monetary policy framework. This transition represents a significant step toward aligning with global best practices in monetary policy, aimed at improving the effectiveness of policy communication and influencing the broader economic landscape, particularly in monetary and credit markets.
National Bank of Ethiopia has drafted a new directive which will allow banks to engage in non-banking business activities. now allows banks to directly engage in businesses not related to banking, provided that they do so in a joint venture or partnership agreement with their customers, through an interest free banking service.
The draft bill is designed to repeal the 1996 Limitation on Investment of Banks, National Bank of Ethiopia directive. Banks who will engage in non banking activites are required to do so in a joint venture or partnership agreement with their customers, through an interest free banking service.
The National Bank of Ethiopia (NBE) has announced plans to hold regular foreign exchange auctions every two weeks, beginning with a USD 50 million auction scheduled for today. This initiative, which will continue for the next several months, aims to stabilize the foreign exchange market and ensure a steady supply of foreign currency to the private sector.
The National Bank of Ethiopia (NBE), the regulatory organ of financial institutions in Ethiopia, is set to introduce a standardized cheque with enhanced security using Magnetic Ink Character Recognition (MICR) starting from early January 2014.
