ADDIS ABABA – June 30, 2025 – The National Bank of Ethiopia (NBE) today announced the immediate repeal of its “Treasury Bond Purchase Directive No. MFAD/TRBO/001/2022,” by “Treasury Bond Purchase (Repealing) Directive No. MFAD/TRBO/002/2025.” The move, effective as of June 30, 2025, signals a shift in the central bank’s approach to treasury bond operations, though specific reasons for the repeal were not detailed in the official announcement.
The NBE stated that the repeal was deemed “necessary,” but did not elaborate on the underlying factors or policy objectives driving this decision. This leaves observers to speculate on the potential implications for the country’s financial markets and monetary policy.
The new directive is issued under the authority granted by the “National Bank of Ethiopia Proclamation No. 1359/2025,” specifically referencing Articles 6 (5, 14), 26(1/b and e), and 53 (2).
While the previous directive is repealed, the NBE has included important transitory provisions to ensure a smooth transition and manage existing commitments. Notably, any outstanding Treasury Bond allotments for June 2025 that were not yet purchased under the old directive will remain valid. These purchases must be settled by July 15, 2025.
Furthermore, all treasury bonds issued before today’s effective date, or those issued under the June 2025 outstanding allotments, will continue to be governed by the provisions of the now-repealed “Treasury Bond Purchase Directive No. MFAD/TRBO/001/2022” as necessary. This provision aims to provide continuity and clarity for existing bondholders and ongoing transactions, preventing disruption in the market.
The central bank’s decision marks a significant development in Ethiopia’s financial regulatory landscape, and market participants will be closely watching for further details or policy statements that may shed light on the rationale behind this strategic change.