Regulatory Alerts2024-07-22
Interbank Money Market Directive No. MFAD/IBM/03/2024 (As Amended)
The National Bank of Ethiopia issued Directive No. MFAD/IBM/03/2024 to establish a regulated interbank money market where licensed commercial banks borrow and lend overnight or seven-day funds in Ethiopian Birr through approved electronic platforms. The directive mandates eligibility based on reserve requirements, sets trading hours from 8:30 AM to 4:00 PM, establishes a minimum deal size of Birr 25 million, and outlines collateral, risk management, and daily reporting obligations. It replaces the 1998 directive, takes effect on July 24, 2024, and enforces administrative penalties and potential suspension for participants who fail to meet their settlement or compliance obligations.
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