Ethiopia’s Central Bank Governor Mamo Mihretu Resigns After Two Years of Ambitious Reforms
Mamo Mihretu has stepped down as Governor of the National Bank of Ethiopia (NBE) after spearheading significant changes in the country’s financial sector. Appointed in January 2023 by Prime Minister Abiy Ahmed, Mihretu oversaw the implementation of bold reforms including floating the Ethiopian birr, opening the banking industry to foreign investment, and launching Ethiopia’s first securities exchange in decades.
A Legacy of Economic Transformation
In a farewell letter released on Tuesday, Mihretu expressed gratitude for the opportunity to serve and acknowledged Prime Minister Abiy Ahmed’s leadership. He highlighted his role in designing and leading the Home-Grown Economic Reform Program. Key initiatives during his tenure included the controversial decision to float the Birr in July 2024, resulting in an approximately 30% devaluation against the dollar. The move, while aimed at attracting foreign investment and boosting exports, has also been met with concerns about potential inflationary pressures and its impact on the cost of living.
Mihretu’s departure marks the end of a transformative period for Ethiopia’s financial landscape. His reforms, while ambitious, have set the stage for a more open and competitive financial system, potentially attracting much-needed foreign capital and fostering economic growth in the long term. The impact of these reforms and the direction of the NBE under new leadership will be closely watched by investors and economic observers alike.
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