THE GOVERNMENT OF ETHIOPIA HAS INTRODUCED NEW CURRENCY NOTES.

የኢትዮጵያ መንግሥት አዳዲስ የደህንነት ገጽታዎች እና ሌሎችም መለያዎች የተካተቱባቸው የገንዘብ ዓይነቶችን ለግብይት እንደሚያውል በዛሬው ዕለት ተገልጿል። ነባሮቹ የ10፣ የ50 እና የ100 ብር የገንዘብ ዓይነቶች ሙሉ ለሙሉ የሚተኩ ይሆናል። አዲስ የ200 ብር ገንዘብም በተጨማሪነት ለግልጋሎት ይውላል። የ5 ብር ገንዘብ ባለበት ቀጥሎ፣ ከተወሰነ ጊዜ በኋላ ወደ ሣንቲም የሚለወጥ ይሆናል። ይህ የገንዘብ ቅያሪ መደበኛ ባልሆነ መንገድ እንዲሁም ከፋይናንስ ተቋማት ውጪ የሚዘዋወረውን ገንዘብ ለመሰብሰብ፣ ሙስናን እና የኮንትሮባንድ ሥራዎችን ለመቀልበስ የታለመ ነው። የፋይናንስ ተቋማት የገንዘብ እጥረትን ለመቋቋም እንዲችሉም ያግዛል።
በአሁኑ ወቅት አብዛኛው የሕትመት ሥራ ተገባዶ በኢትዮጵያ ብሔራዊ ባንክ ግምጃ ቤት ይገኛል። የስርጭት ስርዓት እና ዕቅድ የተዘጋጀ ሲሆን፣ በሚመለከታቸው አካላት አማካኝነት የሚተገበር ይሆናል። በገንዘብ ቅያሬው ሂደት የጸጥታ ማስከበር አካላት ከፍተኛ ሚና የሚጫወቱ ሲሆን፣ የሚመለከታቸው የመንግስት አካላት ከማኅበረሰቡ ጋር በመተባበር ጥንቃቄ በተሞላበት መንገድ ያስፈጽማሉ። ከብሔራዊ መከላከያ ሠራዊት፣ ከብሔራዊ የመረጃ እና ደህንነት አገልግሎት እና ከፌደራል ፖሊስ የተውጣጣ ኮማንድ ፖስት ተቋቁሞ፣ ሂደቱን በበላይነት ያስተባብራል። የክልል መንግሥታትም ተመሳሳይ ኮማንድ ፖስት አቋቁመው ሥራውን እንዲያከናውኑም ይጠበቃል።
ኢትዮጵያ ገንዘቧን የሚወክል ምልክት እንዳልነበራት ይታወቃል። በቅርቡ ለብር መለያ የሚሆን አዲስ ምልክት ተዘጋጅቶ በጥቅም ላይ ይውላል።

The government of Ethiopia  has introduced new currency notes, with enhanced security features and other distinctive elements. The new currency notes replace the Birr 10, 50 and 100 notes while an additional Birr 200 note has also been unveiled. The Birr 5 note remains unchanged and will be turned into coin format soon. The currency change is aimed at gathering currency circulating informally and outside of financial institutions; curb corruption and contraband and support financial institutions confront currency shortage.
Most of the print work is currently in country within NBE vault. Distribution mechanism and planning having been developed and will go in effect through concerned bodies. Security plays a key component in the currency change process and relevant authorities together with members of the community will enforce secure implementation. A Federal command post that includes National Defense, NISS and Federal Police will be set up to oversee this process with the expectation that Regional Command Posts will also be set up.
While Ethiopia has never had a symbol to represent its currency, a new symbol has been designed and will be soon unveiled to symbolize the Birr.
(the report is Office of the Prime Minister-Ethiopia on Sept. 14,2020)

NBE Puts a Cap on Cash Withdrawals for Individuals, Companies

May 19, 2020
Addis Ababa: The National Bank of Ethiopia (NBE) issues a Directive which limits cash withdrawals for individuals and companies from commercial banks and microfinance institutions.
Briefing journalists, Dr. Yinager Dessie, Governor of the National Bank of Ethiopia disclosed that the Bank issued the directive in a bid to curtail illegal transaction, combat tax evasion and money laundering in the market system.
Accordingly, an individual can withdraw cash money up to 200,000 Birr a day, and 1 million Birr in a month, while companies are allowed to withdraw a maximum of 300,000 Birr a day, but not exceeding 2.5 million in a month.
The Governor underscored that individuals or companies that need to withdraw cash beyond the set limit for transaction or other purposes can make payments from account to account, in cheques, CPO or any other form of payment system.
The directive allows bank presidents to make exceptions under certain circumstances and reports such above the limit payment to NBE weekly, the Governor said.
Any bank or microfinance institution in Ethiopia, which violates the directive, will be fined 25 % of the amount it has paid in a penalty, he added
It was learnt that the new directive came into effect as of May 19, 2020.
The full content of the directive is posted at NBE website; www.nbe.gov.et

NBE Issues Directive to License, Authorize Payment Instrument Issuers

Adds Ababa: March 31, 2020. National Bank of Ethiopia (NBE) has issued a new directive that is highly important to promote the safety and efficiency of the payment system.
The directive; “Licensing and Authorization of Payment Instrument Issuers Directive No. ONPS/01/2020” shall enter into force as of 1st day of April 2020.
The directive, signed by the Governor of National Bank of Ethiopia, H.E Dr. Yinager Dessie, gives prominence to innovative payment instruments believing that they are important to increase the use of financial services.
Composed of six parts and twenty articles, the directive, is cognizant of the fact that establishing clear and enabling regulatory requirements are necessary to protect the interest of users of payment instruments.
According to the directive a person other than the licensed financial institutions, shall submit a complete application to NBE to get a license to issue a payment instrument.
As part of the application process, the National Bank, may request for a preliminary meeting and demonstration of the intended payment instrument to be issued, its related services, products as well as operation.
Based on requests made and written approval of the National Bank, a payment instrument issuer may be allowed to provide cash-in and cash-out; local money transfers including domestic remittances, load to card or bank account, transfer to card or bank account; domestic payments including purchase from physical merchants, bill payments; over-the-counter transactions; and inward international remittances services.
Besides, based on written approval of the National Bank, a licensed payment instrument issuer under full responsibility of and written outsourcing agreement with a regulated financial institutions and pension funds may be allowed to provide; micro-saving products, micro-credit products, micro-insurance products; or pension products.
In a bid to mitigate associate risks and maintain reliability of payment instruments, the National Bank of Ethiopia shall oversee payment issuers, their systems, agents and outsourcing counter parties; according to the directive.
The directive is accessed on NBE official website; www.nbe.gov.et.

NBE Bill Repealed

Addis Ababa: November 22, 2019 (NBE):- National Bank of Ethiopia has repealed the NBE-Bill Purchase Directive which used to mandate private commercial banks to buy NBE Bill 27 percent of every loan disbursement.
The Bank has issued a new directive; “NBE–Bill Purchase (Repealing) Directive No. MFA/NBEBILLS/004/2019” and stated in article 2 of this directive that the former Directive No. MFA/NBEBILLS/003/2018 is hereby repealed.
The repealed directive shall have effect with respect to any outstanding NBE Bill which has been issued before the coming into effect of this directive.
The new directive shall come into force as of the 20th November 2019

የኢትዮጵያ ብሔራዊ ባንክ የ27 በመቶ አስገዳጅ ቦንድን አነሳ

አዲስ አበባ፡ ኀዳር 12 ቀን 2012 ዓ .ም (ኢብባ)፡¬- የግል ባንኮች ለተበዳሪዎች ከሚያቀርቡት እያንዳንዱ የብድር ገንዘብ ውስጥ የ27 በመቶ ተቀናሽ አስልተው ለብሔራዊ ባንክ ቦንድ ግዥ እንዲያውሉ የሚያዝዘው መመሪያ ተነሳ።
የኢትዮጵያ ብሔራዊ ባንክ ሥራ ላይ የቆየውን የ27 በመቶ አስገዳጅ ቦንድ መመርያ ቁጥር MFA/NBEBILLS/003/2018 ማንሳት አስፈላጊ ሆኖ አግኝቶታል።
በመሆኑም ባንኩ አዲስ ያወጣውና የቀድሞውን የሚሽረው መመሪያ “NBE–Bill Purchase (Repealing) Directive No. MFA/NBEBILLS/004/2019” ከኅዳር 10 ቀን 2012 ዓ.ም ጀምሮ ሥራ ላይ ውሏል።
አዲሱ መመሪያ ከመውጣቱ በፊት በቀድሞው መመሪያ መሠረት በሂደት ላይ የነበሩ ተግባራት በቀድሞው መመሪያ መሠረት ተፈፃሚ እንደሚሆኑ ታውቋል።

News letter October 2019

የኢትዮጵያ ብሔራዊ ባንክ ከተጣለበት ትልቅ ሀገራዊ ሀላፊነት አኳያ አቅሙን አጎልብቶ በርካታ ትላልቅ ተግባራት ማከናወን እንዳለበት የባንኩ ገዥ ዶ/ር ይናገር ደሴ ገለፁ፡፡ አዲስ ከተሾሙት ም/ ገዥዎችና ዳይሬክተሮች ጋርም የትውውቅ መድረክ ተካሂዷል፡፡ መስከረም 29 ቀን 2012 ዓ.ም በባንኩ የቦርድ አዳራሽ በተካሂደው የሲኒየር ማኔጅመንት ስብሰባና የትውውቅ መድረክ ላይ ክቡር ገዥው እንዳሉት ባንኩ ጠንካራ ሥራ ማከናወን የለውጥ ሂደቱን ማሳካት ያስችለው ዘንድ ነባር አመራር አባላትን በአዲስ በመተካት በአዲስ ሀይል አቅሙን ማሳደግ ይጠበቅበታል፡፡

IMF

Ethiopia Has Builton Its Strong Track Record of Development over More Than a Decade

The International Monetary Fund (IMFhas praised Ethiopia’s remarkable progress over more than a decade.

Published on its website on December 4, 2018, IMF stated that over more than a decade the country has built on it s strong track record of Development.

Growth slowed in 2017/18, but remained high while the current account deficit continued to narrow;the IMF says in its recent report on the economic health of Ethiopia. The sub-Saharancountry is embarking on its next phase of economic and social development—supported by reforms and powered by the private sector.

Over the last decade, high growth has led to a significant reduction in poverty and improved living standards for many Ethiopians.The country’s large infrastructure investments are beginning to bear fruit and the provision of public services such as education and health has increased dramatically.As a result, the population has enjoyed important welfare gains. For example, the number of maternal deaths per 100,000 live births fell radically from 1,080 in 1995 to 353 in 2015 and the proportion of people living in poverty fell from over 45 percent in 1995 to around 23 percent in2015.

Recovering growth after a dip

In 2017/18, Ethiopia’s economic growth dipped to 7.7 percent due to reduced government public expenditure aimed at tackling the growing current account deficit and indebtedness.

Political uncertainty and severe foreign exchange shortages also dampened growth.As the political climate settles and investment recovers, growth is expected to recover to 8.5percent this fiscal year, and the current account deficit should continue to narrow.In their report,IMF staff say they expect inflation—which currently exceeds the single-digit authorities’target—to continue to fall due to an appropriately tight monetary policy.

Risks to medium-term outlook

Despite positive developments, the large external imbalances and the public debt burden are constraining future growth and pose risks to the medium-term outlook.While debt is sustainable in the medium term, Ethiopia remains at high risk of debt distress.

To mitigate those risks, restrained public sector borrowing—particularly on non-concessional
loans—while protecting pro-poor spending programs, will be key, say IMF economists.At the same time, the government will need to mobilize tax revenues and raise exports to reduce vulnerabilities over the medium term.Since his election, Prime Minister Abiy has created space for a more inclusive political dialogue and has taken steps to bring stability to the region. On the economic front, the new government has announced an ambitious reform program for the country aimed at opening the economy to private investment and competition to support sustainable growth.

Developing an open and inclusive economy

The new legal framework for public-private partnerships can play an important role in strengthening growth by promoting private sector development and the provision of public services, while reducing government costs, says the report.It also calls for privatization and removal of barriers to private investment in key sectors, which supports policy announcements by the government.The government also wants to develop the domestic financial system. An important first step will be to introduce a market for government securities with market-determined interest rates.

This will allow the central bank to reduce direct financing of the government and increase the effectiveness of monetary policy in maintaining low and stable inflation.

Reforms to support continued development

In their report, IMF staff encourage the authorities to review the strategy and financial model of the government’s development lending agency—the Development Bank of Ethiopia—which has seen lower-than-expected returns to its investments in recent years. A more flexible system for the exchange rate is also needed to increase foreign exchange reserves, improve external competitiveness, and increase the availability of foreign exchange.This would support the country’s continued development.Analysis carried out jointly by IMF staff and UN Women finds that the government’s agenda of promoting gender equality could yield large economic benefits over time. Closing gender gaps in educational attainment, formal labor force participation rates, and access to quality land another resources are key to realizing these benefits.

The new government has made progress in this area.They have appointed a gender balanced cabinet, while women have been placed in key decision-making positions, including the presidency and the head of the Supreme Court.

CBE Launches Internet Banking

ADDIS ABABA, June 15, 2012- The Commercial Bank of Ethiopia CBE has launched internet banking services in its effort to diversify its business ventures and reach a broader section of customers by providing alternative medium of transactions.

  • The services are divided into personal and corporate internet banking. With CBE’s internet banking individual customers can check their balances transaction details transfer funds transfer money to business partners, family and friends place standing orders, view cheque details, etc around the clock from the comfort of their homes or offices without having to visit a branch.
  • Under corporate banking, organizations can create multiple users with different access rights for each manage their users’ mandate by having multi-level authorization of payments as they require view their account balance information and other account details view daily transactions transfer money between their eligible accounts make payments and/or money transfers to their standard beneficiaries, etc Speaking at a press conference the CBE held in connection with the launch of the service, Information Systems Acting Vice-President Ato Solomon Mengesha said the launch of internet banking will enable the bank to significantly enhance its services.

He said the bank has paid cardinal attention to security issues so that customers’ finances are in the best possible care.

Ato Solomon said the CBE will continue investing in innovative banking services to meet growing customer needs.

CBE goes live with core banking solutions

The Commercial Bank of Ethiopia CBE on April 30, 2012 successfully went live with the core banking solutions in major head office organs and 34 branches in Addis Ababa.

The implementation of the state-of-the-art technology would enable the CBE to better cater to customers requirements in efficient, cost effective and secure manner.

With the new technology, the CBE would also offer additional services, such as internet banking and mobile banking shortly.

Local and international consultants had participated in the project that took 20 months to ensure efficiency, compatibility, security and other issues.

Preparations are in full swing to roll out the technology in the remaining branches.

NBE Holds 16th In-House Presentation Forum

The National Bank of Ethiopia (NBE) held the 16th In-House Presentation Forum on November 25, 2011 here in the premises of the Bank. While opening the forum, Chief Economist and Vice Governor of Monetary Stability Cluster, H.E Ato Yohannes Ayalew noted that the forum plays pivotal role towards enabling researchers debate on important findings and policy proposals, beef up their research skills as well as update themselves with knowledge at the frontier of economic theory and policy.

The Vice Governor further stated that, It is the wish and objective of the Bank that this forum will be able to produce papers that could be published as working paper series.

To this end, a quality assurance and screening committee would be set up in a bid to ensure that papers selected for working paper series are up to the standard, according to the Vice Governor.

Apart from this, the committee will also nominate researchers for the Banks research awards; he said further adding that a research award fund amounting close to Br.100, 000 has been earmarked for 2011/12 fiscal year. Ato Yohannes also pointed out that so far the research award fund has never been utilized for
various reasons. However, he expressed his conviction that the story would be different this time; which would of course depend on the efforts and performance of researchers. Acting Director of Domestic Economic Analysis and Publications Directorate (Directorate tasked with organizing the forum) Ato Tesfaye Gezahagne on his part said that the forum is the first one among the three forums scheduled for the current fiscal year.

The Acting Director further added that nominating discussants from clusters other than Monetary Stability which was rare in the past makes the forum unique.
Among six study papers planned for the forum, five papers highlighting banking sector development in Ethiopia, domestic saving, trade and growth, among others, were presented and deliberated by the participants.

Over 50 researchers, Directors and other invited staff of the bank were in attendance at the day-long forum.

The National Bank of Ethiopia was established in 1963 by proclamation 206 of 1963 and began operation in January 1964. Prior to this proclamation, the Bank used to carry out dual activities, i.e. commercial banking and central banking.

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