Central Bank Governor Highlights Reserve Growth and Reform Milestones at National Financial Forum
By Staff Writer
(Nairobi, Kenya) — The National Bank of Ethiopia announced on September 29, 2026, that foreign exchange reserves grew by 20 percent following the transition to a market-determined exchange rate system.
Speaking at the opening of a three-day national financial forum, National Bank Governor Dr. Eyob Tekalign outlined key performance indicators under the ongoing macroeconomic reform program, while addressing persistent policy challenges.
Central bank officials confirmed that the National Bank offered 2.3 billion dollars in foreign currency to commercial banks through auctions following the exchange rate liberalization.
The foreign exchange reform narrowed the premium between official and parallel market exchange rates from 15.3 percent a year ago to approximately 11 to 12 percent. However, Dr. Eyob noted that the premium has not yet dropped to the single-digit target set by monetary authorities.
Similarly, the central bank’s target to reduce inflation to a single digit remains unmet. Dr. Eyob attributed the persistent inflationary pressures to external economic shocks rather than domestic policy execution, noting that macroeconomists continue to evaluate these factors within the national policy framework.
Implementation of a tighter monetary policy stance significantly accelerated bank deposit growth across the financial sector. However, central bank leadership highlighted that deposit liquidity remains unevenly distributed among commercial institutions.
Addressing structural vulnerabilities in the financial sector, Dr. Eyob called for consolidation among smaller, fragmented financial institutions through mergers and acquisitions to build capital resilience. He warned against uncoordinated investments operating outside the established macroeconomic policy framework.
Opening the forum, Deputy Prime Minister Temesgen Tiruneh emphasized that the ultimate success of national economic reforms must translate into tangible improvements in the daily lives and livelihoods of citizens, beyond statistical metrics.
Government officials and financial leaders agreed that the next phase of structural reform must focus on strengthening agricultural productivity, expanding agricultural credit access, enhancing commercial bank lending capacity, deepening capital markets, and expanding the insurance sector to build long-term economic stability.
__
Join our Telegram Channel : t.me/borkena
Like borkena on Facebook
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
To Support Borkena : https://borkena.com/subscribe-borkena/ – one time support or small monthly options available. Inquire information about it : info@borkena.com