The National Bank of Ethiopia (NBE) and the Ethiopian Securities Exchange (ESX) have signed a Memorandum of Understanding (MoU) to strengthen their partnership in the operations and governance of a transparent interbank money market using the ESX trading platform. Since its official launch in October 2024, financial sector players have transacted more than 377 billion ETB through the platform.
The MoU establishes an enhanced framework for cooperation, information exchange, and disclosure, aimed at safeguarding market participants, mitigating systemic risk, enhancing market integrity, and maintaining confidence in the interbank money market.
Speaking at the signing ceremony, H.E. Mamo Mihretu, Governor of the National Bank of Ethiopia, stated, “The interbank money market is a critical component in modernizing Ethiopia’s financial markets, ensuring greater market efficiency, and strengthening monetary policy transmission.”
The partnership between NBE and ESX reflects a shared commitment to fostering a dynamic and well-functioning financial ecosystem. As Ethiopia continues to implement financial sector reforms, this initiative will play a crucial role in enhancing market confidence and financial stability.
About the Interbank Money Market
The National Bank of Ethiopia introduced the Interbank Money Market in line with Directive No. MFAD/IBM/03/2024 and the Ethiopian Interbank Market Code of Conduct (“Interbank Money Market Rules”). The market helps financial institutions manage their liquidity by allowing them to borrow or lend among each other in the interbank money market, ensuring stable and predictable short-term interest rates, benefiting businesses and consumers. The market also serves NBE as a key instrument for monetary policy transmission.
