15/09/2025
🇪🇹 FX MARKET & NBE NEWS – SEPT 6
1. Market Update
The USD/ETB rate continues to cool, now trading at 158.98 Br/USD (–0.66%), reflecting a second consecutive day below 160 Br. Supply remains robust at 158–160 Br, while demand clusters at 155–157 Br.
2. NBE Governor Mamo Mihretu Steps Down
On September 3, Mamo Mihretu resigned as Governor of the National Bank of Ethiopia, citing a desire to “pursue other passions and tackle new challenges.”
His departure follows two and a half years of sweeping reform—float of the birr, banking liberalization, launch of Ethiopia’s first securities exchange, tripling of FX reserves, and sharp declines in inflation.
3. Speculation: Did He Step Away to Avoid Future Blame?
Officially, Mamo attributed his exit to personal reasons. Observers have since suggested possible undercurrents at play.
Some analysts think he may have stepped down proactively—perhaps if future economic turbulence or shocks were anticipated, stepping aside could preserve a legacy.
Others point to the structural fragility of reforms, the birr’s volatility, or IMF conditions as potential pressure points that could make leadership precarious.
There are also emerging reports that he may be entering a role with the African Development Bank, offering a voluntary transition to a broader stage.
Financial Afrik
4. What This Means for the Market
The market has softened—for now. But confidence could shift quickly with leadership questions looming.
Rate convergence below 160 Br shows temporary calmed pressure, yet demand remains persistent.
Watch for NBE communication clarity and who succeeds Mamo—that will set the tone for reform continuity and investor confidence.
✨ Bottom Line
Mamo Mihretu’s exit is officially framed as voluntary and visionary, following bold economic reforms. Yet rumors swirl—it could also reflect anticipation of future stress or political pressure.
What matters now: the trajectory of Ethiopia’s FX, the continued resilience of his reform agenda, and whether the birr stabilizes—or re-accelerates toward 200 Br.
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