By Samuel Abate
The National Bank of Ethiopia has denied the cash shortages in commercial banks.
In Ethiopia, especially private banks have been described in various ways as having a shortage of cash.
Several media reported that bank institutions did not give cash to their customers.
The National Bank, which is participating in the sixth East African Financial Conference, responded to the matter.
According to the Deputy Governor of the National Bank, Mr Solomon Desita, “The information that private banks in Ethiopia are facing a shortage of cash is false.”
He also added that we have heard five banks are facing a shortage of cash, “However, there was a certain shortage of cash in three banks. Due to the adjustments made by the National Bank and other institutions, there is currently no bank facing a shortage of cash except one”.
Mr. Solomon said that the supply of money and the demand in Ethiopia are not matched and he mentioned that the financial activity that stopped during the war was only caused by the increase in the financial demand after the signing of the peace agreement.
He also briefed the media about the process of opening the banking sector doors to international banking organizations and he said, “the work requires extensive preparations, we are working together with the World Bank and about to complete the work within one year.”
“Following the entry of foreign banks, there are banks that are in the process of merging with local banks to make themselves competitive,” Mr Solomon added.
The sixth East African Financial Conference is being held in Addis Ababa and will focus on Ethiopia’s capital market activities.
