NBE Financial Stability Report Highlights Resilient Banking Sector Amid Reforms

As reported by ENA

Summary

• The National Bank of Ethiopia released its Financial Stability Report on March 17, 2026. The report highlighted continued economic expansion, single-digit inflation, and rising foreign exchange earnings as factors supporting financial stability during the 2025/26 fiscal year.
• Key findings include: the banking sector remained resilient despite the adjustment to market-based exchange rates; credit growth was contained within the NBE's 24% year-on-year target; and export earnings and remittance inflows strengthened the country's reserve position. The IMF projects GDP growth of 7.1% for 2026.
• The report noted that the transition to market-based exchange rates, while causing significant NBE balance sheet losses in 2024/25, has improved transparency and competition in the FX market. The central bank's net open position and capital adequacy remain areas under active monitoring.
• For BirrValue users, the stability report provides context for the medium-term outlook. A stable banking sector and growing FX supply support better service and competitive pricing for remittance recipients and businesses. Check [BirrValue](/banks) for daily rates and [Send Money](/send-money) for provider comparisons.