National Bank of Ethiopia (NBE) has announced that it has decided new minimum reserve amount for banks to be 10 per cent from 5 per cent it was earlier.
NBE Deputy Governor FikaduDigafie said that the revision has come after the government decided to hold more money aiming at containing inflation rate which surges uncontrollably.
The current situation needs to be managed cautiously than running all activities as usual. The bank has also introduced new guideline of managing primary account holders.
NBE Financial Organizations Supervision Deputy Governor Solomon Desta said: “It was difficult to manage account holders because of absence of National ID. For this reason, Identification Card will be issued by banks for account holders.”
Bank Senior Expert ZafuEyesusWorkZafu told The Ethiopian Herald that those measures taken by NBE are not for normal situation; it seems to control the trendy current situations including asset portability and cash flow.
“Basically, there will be no change if the government consumes the reserved one. Inflation by itself is not a merely result of Banks internal mismanagement. And the new declaration for me, does not have curable solution to inflation as far as the government is going to lend banks with higher amount than that of the previous,” he said.
Talking to local media MitikuKebede said: “The government should employ swift measures against economic conspiracies which are being perpetuated by the former system runners. Economic policy revisions should be supported by political resolutions.”
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