The National Bank of Ethiopia's foreign exchange (FX) reform, part of broader macroeconomic changes, has spurred financial growth, according to bank officials, the Ethiopian News Agency reported.
A shift to a market-driven foreign exchange rate system is pivotal, the report read. This competitive landscape is essential for economic health and attracting foreign investment. Officials believe these reforms will significantly boost the nation's economic prospects.
Temesgen Busha of Awash Bank highlighted significant transformations, including digital finance adoption. He stressed the broader impact of these reforms on overall economic development.
According to Endalsh Woldemichael, the Chief Strategy and Innovation Officer at Amhara Bank, the banking industry is presented with a significant opportunity by the market-driven foreign exchange rate system, which is a fundamental component of the government's macroeconomic reforms.
She also underscored that the liberalization of the foreign exchange market will not only improve the competitiveness of banks but also function as a catalyst for attracting foreign direct investment.
Banks must adjust in order to remain competitive in the face of the government's macroeconomic reforms, Fikru Woldetinsae, the Chief Strategy Officer at Ahadu Bank, underlined.
He emphasized that the National Bank's market-oriented foreign exchange rate policy will establish a transparent system by consolidating the previously disjointed official and parallel exchange rates.
He emphasized that the National Bank's market-oriented foreign exchange rate policy will establish a transparent system by consolidating the previously disjointed official and parallel exchange rates.
This creates transparency and unifies disparate exchange rates, fostering a healthier economic environment and bridging formal and informal markets.