Tag Archives: Inadequate money in circulation

EBA recommends to National Bank of Ethiopia (NBE) to limit cash withdrawals

18 Mar

Posted by The Ethiopia Observatory (TEO)

The Ethiopian Banker’s Association (EBA) provides policy recommendations to the National Bank of Ethiopia (NBE) that includes accessing NBE bills and limit cash withdrawals from banks as a way out from the current liquidity crunch.

The financial industry has been in liquidity shortage in the past couple of months. Meanwhile the government through the central bank took several measures to tackle the problem but to no avail.

NBE cut the 27 percent NBE bills implemented since 2011 on private banks to buy 27 percentage bonds from their every fresh loans. Besides that to improve banks liquidity the central bank has been auctioned 14.5 billion birr for banks to ease their cash shortage.

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