The National Bank of Ethiopia is Taking a Stand to Improve the Economy
The National Bank of Ethiopia is putting its focus on the country’s macroeconomic activity. In the meeting held at the Commercial Bank of Ethiopia’s new building main hall, On February 1, 2023, Ato Mamo Mihretu, National Bank of Ethiopia Governor since January 20, 2022, explained their plan to improve the country’s economy.
“For us, there will be two top priorities. The first is to use various financial strategies to achieve price stability and stabilize the Foreign exchange market. Financial stability is the second” issued Ato Mamo Mihretu.
NBE (National Bank od Ethiopia) Expected Economic Growth
According to Ato Mamo Mihretu, the country’s economy is expected to grow by 7.3 percent, one percent more than last year’s percentile. He explained that the bank struggled economically because of the inflationary pressures of around 30 percent for more than a year.
“The National Bank of Ethiopia will work hard for a fair foreign exchange and a disciplined financial system.” Ato Mamo said.
Ato Mamo thanked banks for investing ETB 158 billion in treasury bills in the last six months, which helped grow the economy.
In the past six months, banks continued to issue more loans to customers despite the increased investments in Treasury bills.
According to Mamo, the main reasons for the sharp rise in bank loans are the absence of lending limits and the entrance of new participants into the banking sector.
National Bank of Ethiopia (NBE) Bank Deposit Growth
The deposit grew by 30% over the previous six months as well. Over 1.3 trillion birr worth of bank deposits is still overdue. Mamo expects the amount of cash available outside banks to rise even further.