Page 1 - Print Version Vol 20 #1022
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                                                                                                                                                                      A JOURNEY OF TRUST

                                       Volume 20 No. 1022, SUNDAY, December 1, 2019 Content Matters




                                                                             T e n ( 1 0 ) b i r r o n ly

Central Bank Opens Treasury Bill Market                                                                                                                               Bill Proposes
                                                                                                                                                                      Formation of
                         The yield rate will be determined by the open market                                                                                       Sugar Board

     By FASIKA TADESSE                 with the main aim of rebalancing      Yinager Dessie (PhD), governor of       On behalf of the Ministry of                          By FASIKA TADESSE
                                       macroeconomic fundamentals                                          the NBE.  Finance, the central bank issues                    FORTUNE STAFF WRITER
   FORTUNE STAFF WRITER                and sustaining economic growth.                                               four types of T-bills with maturities            A bill that proposes the formation
                                       The government has been using                                                 of 28, 91, 182 and 364 days based                of a board, which will be tasked
As of next month, interested           T-bills to cover short-term budget                                            on the borrowing demand of the                   with regulating and overseeing the
individuals and financial              deficits, which are also financed                                             Ministry and the liquidity situation             production and marketing of sugar,
institutions can buy treasury bills    through borrowing money from                                                  as forecasted by the NBE.                        is in the making.
from the National Bank of Ethiopia     the central bank.                                                                                                              Hired by the Ministry of Finance
(NBE) through an auction.                                                                                            Since T-bills were introduced in                 (MoF), a team of legal experts
                                       Ahead of launching the market, the                                            1993, the market was entirely                    from the Addis Abeba University
The central bank has also decided      Governor of the NBE, Yinager Dessie                                           dominated by private and public                  and an economist from the National
the market will determine the yield    (PhD), called heads of the financial                                          services social security agencies,               Bank of Ethiopia has been drafting
rate of the bill to attract banks and  institutions to a meeting yesterday,                                          the Development Bank of Ethiopia                 the Sugar Industry Administration
insurance companies. Individuals       November 30, 2019, to brief them                                              (DBE) and other public non-bank                  Proclamation for the past half year.
with cash can also participate in a    on the changes in the T-bill market.                                          institutions.
primary market through auctions.       In the same week, the central                                                                                                                            (Continued on PAGE 4)
                                       bank gave technical training to two                                           The average weighted yield of the
The latest move of the central bank    staff members from the treasury
is introduced as part of the recently  department of each bank.                                                                                (Continued on PAGE 5)
launched Homegrown Economic
Reform Agenda, which was crafted

Keeping Up with the Jacks

Prime Minister Abiy Ahmed (PhD), Jack Ma, co-founder of Alibaba Group, Yinager                                                                                                                                                                            Photo by: Sawrawork Tafari
         Dessie (PhD), central bank governor, and Eyob Tekalign (PhD), state minister for
         Finance, visited the ICT Park in Addis Abeba on Monday, November 25, 2019. In        enterprises to reach global markets.
         the same week, another of the tech world’s influential entrepreneurs, Twitter's      "By collaborating in these platforms," said Jack Ma, “Africa can compete with Europe
CEO and co-founder Jack Dorsey, also visited the capital.                                     and America. In the past, we believed in big; for the future, we believe in small; small is
Jack Ma and Prime Minister Abiy oversaw the signing of a Memorandum of Understanding          beautiful.”
(MoU) between the Ethiopian government represented by Getahun Mekuria (PhD), minister         The Chinese billionaire also pledged to help the country develop its entrepreneurship
of Innovation & Technology, and Alibaba Group, represented by Eric Jing, group director       training capacity. Abiy’s administration is keen to open the country for more private-sector
and financial services chairperson and CEO.                                                   economic activity in general and to attract more international players in particular. One of
The MoU is to establish an Electronic World Trade Platform (eWTP) hub in Ethiopia.            the strategies to achieve these goals is creating a digital economy. Eyob tweeted, “Ethiopia
The trading platform, which is the latest initiative that Jack Ma is promoting, is meant      is serious about building a digital economy.”
to facilitate smart logistics and cross-border trade enabling Ethiopian small and micro       Following a different approach and seemingly more focused on understanding the
                                                                                              technological environment for himself, Jack Dorsey of Twitter made the rounds by visiting
                                                                                              with Ethiopia’s tech enthusiasts.

Rent Expenses (2017/18)  Dashen (193.3m Br)  BoA (145.5m Br)                 NIB (120.4m Br)  United (115.9m Br)     Awash (144.9m Br)                                LIB (58.5m Br)  BIB (74.9m Br)

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