During the past years of reform, key reform actions have included modernizing monetary policy,

During the past years of reform, key reform actions have included modernizing monetary policy, improving the foreign exchange system, transforming the financial sector, and undertaking institutional reforms. These reform measures have made it possible to reduce inflation from over 30 percent in June 2019 to 9.7 percent by December 2025. Through the implementation of foreign exchange reforms, in addition to increasing the availability of foreign currency, it has been possible to narrow the gap between the official and parallel markets. Currently, the share of credit extended to the private sector has reached 77 percent. With regard to digital accounts, reforms have enabled the establishment of 254 million accounts.

Looking ahead, priority areas include keeping inflation in single digits, making the foreign exchange market more competitive and stable, implementing bank mergers and acquisitions, establishing a regulatory institution for the insurance sector, and strengthening the interest-free (Islamic) banking system.

• Eyob Tekalign (PhD)
  Governor of the National Bank