Farewell to Sovereignty: The National Bank of Ethiopia Slips Away

By Kebour Ghenna

The first warning to the Government of Ethiopia came straight from the IMF: Shape up, or you’re not getting a dime!

Whether this government thinks it’s outsmarting the IMF or simply doesn’t understand who it’s dealing with, last week’s developments suggest we’re in for a surprise.

Dear Readers, buckle up—we’re about to delve into what the IMF-imposed changes could mean for Ethiopia’s economic future. On the surface, the requirements to overhaul the governance of the National Bank of Ethiopia (NBE), enhance decision-making structures, and improve transparency and accountability sound beneficial. But the reality is far more complex. Implementing these reforms without careful adaptation to Ethiopia’s unique context could lead to instability rather than progress.

The pressure to align Ethiopia’s financial governance with international standards might force the country to adopt policies that don’t fully address its local challenges. Now, let’s talk about “external control.” Imagine this: You’re the captain of a ship (Ethiopia), and suddenly, someone else (the IMF) grabs the wheel. They assure you it’s for your own good, but there’s a good chance they don’t know these waters as well as you do. Sure, they might help avoid a few rocks, but what if they steer you straight into a storm? By handing over control of its National Bank, Ethiopia risks losing its ability to navigate its own economic challenges. Instead of solving Ethiopia’s problems, these one-size-fits-all solutions could exacerbate them. The risks of disrupting existing financial systems and creating new problems are real and demand serious consideration.

Why does the IMF insist on making the NBE independent? The obvious reason: it wants to control it.

How else do you explain the fact that the NBE is now required to submit comprehensive draft legal amendments to the Ethiopian Parliament… in consultation with IMF… and by December 2024!!

Yes, Dear Readers, we are about to hand over control of one of the most important institutions in the country—the NBE—to the IMF. Once this monetary law act is passed, the NBE, the key economic institution, becomes “independent,” giving it the power to make or break any government with its monetary policies. No one will have the right to interfere with its decisions. Citizens can elect whoever they want, but they will no longer have control over their country.

And trust me, once the NBE becomes independent, who do you think will control it? Not the people of Ethiopia, not even the wealthy elites of Ethiopia. It’s going to be the global elites who will pull the strings of our economy through the central bank.

Maybe I’m paranoid, but I see danger ahead.

Original source: https://www.linkedin.com/feed/update/urn:li:activity:7231297338378457090/