Whereas, the National Bank of Ethiopia has the powers and duties to regulate and determine the supply and availability of money and credit as well as establish modernize, conduct and monitor, regulate and supervise payment, clearing and settlements systems;

Whereas, there is a need that banks utilize and manage effectively their funding and liquidity demand using the existing liquidity in the banking system;

Whereas, it becomes important to have an interbank money market through which commercial banks manage their funding and liquidity through borrowing and lending from and to each other and also enhance efficiency of price based monetary policy framework;

Whereas, it found important that National Bank of Ethiopia wants to deepen interbank money market to enhancing the intermediation process in the market; Now, therefore, in accordance with Article 5 (sub article 4 & 11), Article 15 sub article 1(a(2)), and Article 27(2) of the National Bank of Ethiopia Establishment Proclamation No. 591/2008 (as amended), the National Bank of Ethiopia, (hereafter the NBE) has issued this Directive.