July 19, 2024

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NBE first auction result

NBE Conducts First Open Market Operations Auction

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The National Bank of Ethiopia NBE held its inaugural Open Market Operations (OMO) auction today. This auction was a liquidity absorbing exercise where the central bank aimed to withdraw excess liquidity from the financial system.

NBE first auction result

The auction was well-received, attracting 16 bidders who offered a cumulative amount of Birr 19.970 billion at the announced National Bank Rate (NBR) of 15 percent. This indicates a strong interest from financial institutions in participating in the OMO auctions, which are designed to help the NBE manage liquidity and maintain price stability.

Moreover, the next OMO auction is scheduled to take place in two weeks, on July 25, 2024. This regular auction schedule will allow the NBE to continuously monitor and adjust the liquidity levels in the Ethiopian financial system, ensuring a stable and efficient monetary environment.

Two days ago, NBE announced the major reforms for the financial market of Ethiopia. Governor Mamo Mihretu of the NBE is set to initiate open market operations that will allow banks to trade their liquid assets. This move replaces the previous informal exchanges and is seen as a step towards an interest-based monetary policy framework, potentially invigorating Ethiopia’s financial market. Read More…