NBE Keeps Credit Cap, Raises Reserve Requirement Ratios for Banks

As reported by Ethiopian Monitor

Summary

• The National Bank of Ethiopia's Monetary Policy Committee recommended keeping the credit growth cap at 24% year-on-year through at least March 2026. The policy rate remains at 15%.
• To manage excess liquidity from gold-related FX accumulation, the NBE raised the reserve requirement ratio from 7% to 10% on a monthly average basis (daily stays at 5%). Banks have 3–6 months to comply. The MPC also recommended removing the minimum savings rate, which the NBE Board approved.
• BirrValue review: Tight monetary policy is 'indispensable' until inflation reaches single digits (currently 10.9% in November 2025). For remittance senders and FX users, this signals continued caution—rates and liquidity conditions will stay restrictive. Compare bank rates; policy stance affects FX availability and conversion costs.