Ethiopia central bank resignation sparks uncertainty over monetary reforms, FX stability, and IMF-backed investor confidence plans
Addis Ababa, September 3, 2025 — The Ethiopia central bank resignation of Governor Mamo Mihretu has created uncertainty around the country’s ambitious monetary reforms. His exit comes as Ethiopia rolls out a managed birr float and banking sector liberalization, both seen as critical to attracting investors.
Why the Exit Matters
Changes at the National Bank of Ethiopia directly affect foreign exchange stability, inflation control, and investor confidence. Analysts warn that the resignation could slow momentum in reforms closely watched by the International Monetary Fund and global markets.
Mihretu played a central role in Ethiopia’s shift toward a more flexible exchange rate, opening channels for foreign capital, and modernizing the banking sector. These reforms are crucial for a country that aspires to be a regional financial hub. His resignation leaves a leadership gap at a delicate time, as shown in Ethiopia’s 15b-budget for 2025-26.
Market and Investor Reactions
Financial experts say the resignation could complicate talks with international lenders and delay capital inflows.
“A leadership gap at the central bank risks slowing FX liberalization,” said a Nairobi-based economist, speaking to Bloomberg.
What Comes Next
The National Bank of Ethiopia and the Ministry of Finance are expected to announce succession plans soon. Investors and development partners will be watching closely for signals that Ethiopia remains committed to its reform agenda.
