October 7, 2017 - The National Bank of Ethiopia (NBE) will begin trading bonds in the secondary market this Ethiopian fiscal year (2017/18), reports FBC.The plan was delayed by two years because of failure to conclude the necessary studies at the required time, according to Dr Yohannes Ayalew, vice governor of NBE. As the system is new to Ethiopia, the preparation period took more time than expected.
“However, since all the necessary reparations are completed now, we will begin it this Ethiopian fiscal year,” he said.
Dr Yohannes said the scheme will increase the demand of the people for bonds, create opportunities for those who could not able to purchase government treasury bill, increase sale of government treasury bills as well as create financial options for the government, in addition to the existing commercial banks.
According to him, the National Bank of Ethiopia also envisaged upgrading the secondary market into capital market.