ADDIS ABABA – The National Bank of Ethiopia’s recent reforms in foreign exchange (FX) management are being hailed as a major growth catalyst for the financial sector, according to industry leaders. This development is part of a broader suite of macroeconomic reforms aimed at revitalizing Ethiopia’s economic landscape.

According to the Ethiopian News Agency, Bank officials from several leading institutions, including Awash Bank and Amhara Bank, have expressed that the shift towards a market-driven foreign exchange rate system is pivotal for enhancing competitiveness and economic health within the sector. Temesgen Busha, Chief Transformation Officer at Awash Bank, remarked on the significant transformations in the banking sector, notably through digitalization and regulatory reforms. He underscored the critical role of market-led foreign exchange rates in driving wider economic development.

Walsh Woldemichael of Amhara Bank and Fikru Woldetinsae of Ahadu Bank both pointed out that the liberalization of the FX market is not only improving bank competitiveness but is also attracting foreign direct investment. The officials emphasized that a unified exchange rate system aligns the official and parallel markets, fostering a more transparent and robust financial environment. This alignment is expected to bridge gaps in currency services and boost overall economic stability.