The National Bank of Ethiopia on Wednesday announced five revised regulatory directives to “strengthen the framework of the financial sector oversight.”
The bank claims that the revisions were made in alignment with international best practices “for Banking Supervision and to accommodate new developments in the sector, thereby building the foundation for strong and inclusive growth.”
The disclosure from the bank said the changes were made to the regulatory system in the sector. And they are made in “response to the development of the domestic banking industry,” it was said. It is also noted that the changes were in the Bank’s three years strategic plan.
There has been an ongoing conversion with international monetary institutions : IMF and the World Bank. Reports from different sources were indicating the financial institutions have been pressuring the government to further devalue Ethiopian birr. As it turns out, the Ethiopian government seems to have quietly devalued the exchange rate of Ethiopian Birr for money transfers from overseas. For example, a Canadian dollar used to fetch about 23 to 25 Ethiopian Birr a year after Abiy took power. Last week, it was exchanged for 89 Ethiopian birr if the money transfer is directly deposited to an account in Ethiopia. If it is for cash pickup, it is about 42 Ethiopian Birr.
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