Ethiopia-Economy

Ethiopia’s national bank in modernization bid

APA-Addis Ababa (Ethiopia)

The National Bank of Ethiopia (NBE) announced that it is on the process of approving three draft bills to modernize the financial sector and improve the efficiency of remittance flows.

According to Dr Yinager Desie, Governor of the National Bank of Ethiopia, the bank has already amended ten non-functional and defective directives during the past seven months.

The new draft bills, which will be approved once consultations are held with relevant bodies, incorporated directives that allow the Ethiopian Diaspora to take part in the local financial sector, he told journalists on Wednesday.

The Governor further said the bank is ready to put in place a new, efficient, and innovative system to improve remittance flows, which is the main source of the country’s foreign currency earnings, including mobile banking system.

Although it is hard to say that that country’s foreign reserve is sufficient, it has shown improvement compared to how it was seven months ago. However, the decline in overall export trade performance remains a threat, he added.

Dr Yinager also rejected rumor of making exchange rate adjustment on foreign currency.

“The government has no plan to make any adjustment. However, it will take administrative measures to narrow the gap between the black market exchange rate and the legal one,” he said.

Ethiopia’s economic growth has been declining since 2015. The growth for this fiscal year is expected to be close to or more compared to the one registered last fiscal year, he stated.

The country registered a 7.7 percent economic growth last year.


MG/as/APA

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