Ethiopia Names Eyob Tekalign as Central Bank Governor

Saturday 20th September 2025

by inAfrika Newsroom

Ethiopia central bank has a new governor: Eyob Tekalign. Prime Minister Abiy Ahmed appointed the former state minister of finance on Sept 19. He replaces Mamo Mihretu, who left earlier this month. The move comes as Ethiopia manages high inflation and a tricky exchange-rate path

Ethiopia central bank: Appointment and mandate

Tekalign has worked at the centre of fiscal and economic policy since 2018. He sat on boards tied to state holdings, telecoms, and power utilities. Abiy’s office says the change is part of a broader economic push. Markets will look for his first guidance on liquidity, banks, and the foreign-exchange regime. Reuters notes that his predecessor led key reforms, including a move toward a freer birr and steps to open the sector to foreign banks.

Early signals will matter. The National Bank of Ethiopia updates rules often when inflation pressures rise. Traders will watch cash reserve rules, FX auction calendars, and payment backlogs. Clear communication can steady banks and importers that plan dollar needs weeks ahead.

Policy backdrop and next steps

Ethiopia still faces price pressures and FX shortages. Tekalign inherits tight money conditions and a fragile credit channel. He can use banking tools to cool demand while the treasury pushes growth. Coordination with the finance ministry will be key. The central bank also supervises a sector that is preparing for foreign entrants once rules finalize. That work started under Mamo, and investors will ask for timelines.

The new governor must balance three tasks. Keep inflation on a downward path. Improve FX access for priority imports. And protect bank stability as competition rises. Each step will affect households, factories, and public projects.

Market and regional implications

Banks want predictable FX windows and faster settlement. Importers want a clear queueing system that cuts delays. A steady plan could lower risk premiums and help lenders price loans. Regional investors will also track the opening to foreign banks. Cross-border players see room in payments, trade finance, and digital services. If policy holds, Ethiopia could attract fresh capital into banking and telecoms.

Analysts expect a first policy signal within days. Watch the next circular from the central bank and any schedule change to FX sales. Those notices will show how Tekalign plans to start.