Ethiopia’s Central Bank Governor Says “Macroeconomic Reforms Yield Historic Successes”

By: Getahun Tsegaye
Staff Reporter 

Addis Ababa, Ethiopia – Comprehensive macroeconomic reforms implemented in Ethiopia have led to “historic achievements” in the nation’s economy, according to Mamo Mihretu, Governor of the National Bank of Ethiopia (NBE). The Ethiopian Broadcasting Corporation (EBC) reported Mamo’s statements, highlighting the positive impact of the ongoing policy adjustments.

“The comprehensive macroeconomic reform primarily aimed at creating a stable macroeconomic environment and has now entered its implementation phase,” Mamo stated. He further detailed the key objectives of these reforms, which include enhancing revenue collection, alleviating debt burden, stabilizing inflation through the implementation of modern monetary policy, resolving long-standing foreign currency shortages, and ensuring a healthy financial sector.

The Governor emphasized that the overarching goal of the reform is to foster “healthy, inclusive, and job-creating economic growth that better engages the private sector within a stable macroeconomic context.”

He asserted that the reform’s implementation has already registered “very satisfactory and historic achievements.” Mamo noted that this tangible success has not only been observed by the government but also acknowledged by international institutions supporting the reforms.”  

Ethiopia embarked on a macroeconomic reform agenda as part of its Homegrown Economic Reform Program (HERP), which was officially launched in September 2019. This comprehensive program aims to address long-standing structural imbalances in the economy and foster sustainable growth.

A key aspect of these reforms, as highlighted by Governor Mamo, is the modernization of monetary policy. He specifically mentioned that the revised National Bank of Ethiopia proclamation explicitly states that the bank’s “key function is to stabilize prices by creating a modern monetary policy.”

Furthermore, Mamo revealed a significant milestone: “For the first time in Ethiopia’s history, the National Bank’s interest rate setting mechanism has been introduced as part of this monetary policy reform.” This move is crucial for controlling the money supply within the economy and is expected to “greatly assist in stabilizing inflation.”

Subscribe  : https://borkena.com/subscribe-borkena/ 

Join our Telegram Channel : t.me/borkena

Like borkena on Facebook

Add your business to Ethiopian Business Listing / Ethiopian Business Directory  Business Listing Toronto 

Join the conversation. Follow us on X (Formerly Twitter)  @zborkena to get the latest Ethiopian News updates regularly.  Subscribe to YouTube channel To share information or for submission, send e-mail to info@borkena.com