Ethiopia to launch one-year Treasury bill auctions

Nov 18, 2010

A one-year Treasury bill is to be introduced by Ethiopia next month and be supported by weekly auctions, the country's government has revealed.

In a letter to the International Monetary Fund (IMF), the nation stated the sales will help "to refine our liquidity management capability", Bloomberg reports. Treasury notes are largely purchased by state-owned commercial banks, the news agency noted, with auctions being held at irregular intervals and the notes covering durations of 28, 91 and 182 days.

The correspondence to the IMF also revealed Ethiopia is aiming to achieve economic growth of 11 per cent in 2010-11, with the "conservative assumption" being that the economy will expand by at least 8.5 per cent. Earlier this week, the IMF's Executive Board confirmed it had approved a $62.67 million (€45.92 million) disbursement for Ethiopia after conducting the second and final review of the nation's economic performance.

Commenting, Naoyuki Shinohara, Deputy Managing Director and Acting Chair of the IMF's Executive Board, noted fiscal performance in the country last year was "strong" and that it has "successfully implemented policies to reduce inflation and rebuild external reserves".