NATIONAL BANK OF ETHIOPIA
This section aims at providing investors with an overview of the recent monetary policy developments and the balance of payments prepared by the National Bank of Ethiopia ("NBE"). The key objective of the monetary policy of the NBE is to maintain price & exchange rate stability while supporting sustainable economic growth of Ethiopia. The National Bank of Ethiopia also performs the role of banking supervisor and provides regular updates of key statistics related to the banking sector.
Recent developments of the balance of payments in Ethiopia have been largely driven by the implementation of major infrastructure projects in the country that contributed to higher current account deficits, balanced by growing FDIs and long-term foreign borrowings. Trade balance developments also evidence the ongoing diversification of the Ethiopian export base, although coffee continues to play a dominant role in exports.
The NBE has been implementing an effective monetary policy over the past years, resulting in the return to a single digit inflation rate, in line with many other sub-Saharan peer countries. Besides, the NBE has been actively working to increase its foreign exchange reserves in order to ensure consistency between monetary and exchange rate policies.
The banking sector in Ethiopia is composed of 16 private and 1 state-owned commercial banks, one state-owned development bank, 17 private and one state-owned insurance companies, more than 30 microfinance institutions, and few emerging lease-finance companies. Under the supervision of the NBE, the Ethiopian banking sector is rapidly growing, developing its outreach and exhibiting strong financial soundness.For further information click National Bank of Ethiopia