NBE to suspend mandatory bond purchases for banks, aiming to boost liquidity
The National Bank of Ethiopia (NBE) has announced that it will suspend the two mandatory bond instruments that banks were required to buy, even though it anticipated that Treasury bonds (T-bonds) alone would bring in 50 billion birr during the current fiscal year.
Regarding the introduction of the economic reform program on July 29th, the administration has pledged to implement several changes throughout the economy, including the banking sector.
Following a deal negotiated with international partners, such as the International Monetary Fund (IMF), the central bank has committed to suspending T-bonds by the end of this year and Development Bank of Ethiopia (DBE) bonds by the end of 2025, respectively.
Source: capitalethiopia
