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On December 17, 2024, the Governor of the National Bank of Ethiopia (NBE), Mamo Miheret, addressed the House of People’s Representatives, highlighting the increasing digitization of the country’s financial system. According to his statement, digital money transfers facilitated by banks have now exceeded cash transactions this year.
Governor Mamo noted that Ethiopia’s banking activities are fully under the regulatory oversight of the National Bank of Ethiopia. He explained that ongoing reforms within the NBE aim to modernize and align the financial system with digital advancements.
While discussing the newly approved Banking Proclamation, Mamo Miheret addressed gaps in understanding and criticized certain questions raised by the House. He clarified that the new proclamation is not directly related to recent reforms undertaken by the National Bank. However, he cautioned that the frequent implementation of such proclamations may negatively impact banking operations.
The Governor also emphasized that there is currently no revised banking regulation to attract foreign investment, and he called for addressing concerns raised by the House regarding this matter. He explained that the NBE’s ongoing amendments are primarily linked to monetary policy adjustments, urging the Council to ensure accurate interpretation of these changes.
Furthermore, Governor Mamo praised the National Bank of Ethiopia’s performance, stating that its measures are more effective compared to other central banks in Africa. He commended the NBE’s role in stabilizing the economy, describing it as “commendable.”
The Banking Proclamation, which had been long-awaited, was officially resolved during the Council meeting held today. Governor Mamo also took the opportunity to respond to questions and provide clarifications to the members of the Council.
