The Ethiopian Federal Government officially published the National Bank of Ethiopia Proclamation 1359/2025 (“The Proclamation”) on February 4, 2025.
This Proclamation introduces key changes that were previously outlined in Volume 2 of our newsletter when the bill was in draft form. These include the expansion of the NBE’s powers and duties, such as issuing short term debt instruments for open market operations, and licensing foreign exchange dealers. The Proclamation also establishes a higher capital requirement for the NBE, increasing the paid-up capital to 10 billion Birr, up from the previous 500 million Birr. In terms of governance, it details the appointment process and qualifications for the NBE’s leadership, including the Board of Directors, Governor, and Vice Governors. Furthermore, the Proclamation prohibits the NBE from providing direct loans to the government, except in cases of temporary overdraft or force majeure, and transfers the oversight of franco-valuta imports from the Ministry of Finance to the NBE. These changes reflect the government’s efforts to enhance the NBE’s regulatory and supervisory functions, ensuring greater financial stability and independence.
For detailed information please see Volume 2 of our newsletter.
