Regulatory Alerts2025-02-04
National Bank of Ethiopia Proclamation No. 1359/2025
Issued by the Federal Democratic Republic of Ethiopia in February 2025, Proclamation No. 1359/2025 reconstitutes the National Bank of Ethiopia as an autonomous institution directly accountable to the Prime Minister, replacing its prior legal framework. The legislation mandates price stability as the bank’s primary objective while granting it comprehensive authority to license and supervise financial institutions, issue legal tender, manage foreign exchange and international reserves, implement macro-prudential policies, and act as a resolution authority for failing entities. It establishes a twenty-billion Birr government-owned capital structure, dictates that net profits be retained in a reserve fund until reaching five percent of monetary liabilities before dividend distribution, and explicitly prohibits commercial lending and equity investments except for statutory social responsibilities or operational necessities.