New Interbank Money Market Launches on ESX: A Game-Changer for Financial Trading

The interbank money market platform, which will be exclusively hosted on ESX’s electronic trading platform, was launched. The interbank money market segment on ESX’s trading platform was approved by the National Bank of Ethiopia (NBE) in accordance with the Interbank Money Market Directive (as amended) No. MFAD/IBM/03/2024.

Using the electronic interbank money market platform, liquidity-surplus participant banks will be able to quote/publish the amount of money they availed for inter-bank lending & corresponding interest rate while liquidity-deficient participant banks will be able to choose the most favorable offering available on the platform.

This will help banks to manage their liquidity position in an efficient and transparent manner and support the transition into interest-based monetary policy that NBE has been operationalizing since July 2024. The conduct of participant banks, including their admission as participants in the electronic interbank money market platform & trading hours, are subject to the directives, codes and guidelines developed by NBE.

Looking Ahead: Digital Transformation in Ethiopian Banking

The introduction of this electronic interbank money market platform is part of a larger digitalization journey for Ethiopia’s financial services. As other services, such as digital payments and online banking, continue to grow, this platform reinforces the commitment of ESX and the NBE to drive technological advancements. Moving forward, this development may pave the way for future innovations, including real-time data analytics and even potential integration with international banking systems.