Ethiopia’s central bank governor, Mamo Mihretu has resigned as governor of the National Bank of Ethiopia (NBE), leaving behind a record of sweeping monetary and financial reforms that reshaped the country’s economic landscape.

During his term, Mihretu implemented a market-based exchange rate system to address chronic foreign currency shortages and boost competitiveness. Foreign exchange reserves tripled, inflation fell to a seven-year low, and financial sector assets surpassed 5 trillion birr. Digital payments grew more than tenfold, reflecting wider initiatives to expand financial inclusion.

Mihretu also guided legislation that strengthened the central bank’s autonomy, opened Ethiopia’s financial sector to foreign banks, and secured 10.5 billion US dollars in external financing from multilateral partners, including the IMF and World Bank.

Before joining the central bank in January 2023, Mihretu was the founding chief executive of Ethiopian Investment Holdings, the sovereign wealth fund managing state enterprises such as Ethiopian Airlines and Ethio Telecom. He was a senior member of the Home-Grown Economic Reform Programme and previously worked as a senior private sector specialist at the World Bank Group, advising on trade, investment, and economic governance.

His reforms, while impactful, drew criticism. The birr float, aimed at stabilizing foreign exchange, coincided with rising living costs, particularly for households facing high food and fuel prices. Economists and opposition figures highlighted the social pressures generated by these measures.

Mihretu cited a desire “to pursue other passions and tackle other challenges” in his resignation statement and expressed gratitude to Prime Minister Abiy Ahmed for his guidance. His departure leaves the National Bank at a pivotal moment as it consolidates gains from recent reforms while addressing the economic and social challenges that have accompanied them.