Ethiopia’s National Bank Governor: “No Foreign Currency Rate Adjustment Will Be Made at This Time”

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This week, Ethiopia joined the group of African countries, such as Ghana and Zambia, that defaulted on repaying debt after failing to make a $33 million interest payment to its Eurobond lender.

The cost of living in the country continues to soar, reaching an unbearable point for millions of Ethiopians.

Ethiopia has undergone recurring foreign currency devaluations in the past few years. Amid continuous meetings with institutions like the IMF, there have been concerns that the National Bank of Ethiopia might further devalue the Ethiopian Birr.

In the last Ethiopian fiscal year, Ethiopia raised $24 billion in foreign currency from various sources. The Bank claims that the currency reserves have been growing.

Mamo Mihretu, Governor of the National Bank of Ethiopia, dismisses the prospect of a currency rate adjustment, stating that there won’t be one at this point.

The Governor also commented on the question of opening the banking sector in Ethiopia to foreign investors. He emphasized that it should not pose a concern as long as the bank possesses robust regulatory mechanisms, which, according to him, are continuously strengthening.

Additionally, he made remarks on the rumors regarding preparations to print money locally. Watch his interview with the state-owned media, EBC

Video : embedded from EBC YouTube channel
Cover photo : screenshot from the video

Ethiopian News Video

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