The Ethiopian Securities Exchange (ESX) has announced that the Ethiopian Interbank Money Market has surpassed 1 trillion birr in cumulative transaction volume since its launch in October 2024.

The platform allows commercial banks to lend and borrow short-term funds, typically overnight or for seven days.

Trading activity in September illustrates the market’s scale. Between September 22 and 26, 30 overnight trades totalled 15,100,000,000 birr, while 28 trades with seven-day maturities accounted for 11,020,000,000 birr. From September 1 to 5, six overnight trades reached 2,500,000,000 birr, and 22 trades for seven-day maturities amounted to 7,605,000,000 birr.

The market was established under the Interbank Money Market Directive (MFAD/IBM/03/2024) issued by the National Bank of Ethiopia. It forms part of broader reforms, including standing lending and deposit facilities and preparation for an interest rate–based monetary framework.

Officials have indicated that the interbank market provides a mechanism for banks to manage liquidity through short-term lending and borrowing. Smaller and private banks continue to face liquidity pressures due to high loan-to-deposit ratios, and market infrastructure and transparency remain under development.