Mamo Mihretu Steps Down as Ethiopia’s Central Bank Governor

A year after stewarding Ethiopia’s transition into a floated exchange regime, Mamo Mihretu, Governor of the National Bank of Ethiopia, has left his post. The youngest central bank chief in the institution’s six-decade history, and the founding CEO of Ethiopia’s sovereign wealth fund, announced his resignation this week on his X account. His tenure, a little more than two years, was brief but consequential.

When Mamo was appointed, critics questioned whether a lawyer with a background in logistics and policy reform could tame inflation, stabilize a fragile banking system, and safeguard the independence of an institution long overshadowed by the executive. That skepticism was not misplaced. Ethiopia’s central bank, like many in developing economies, has historically functioned more as a regulatory arm of the state than as an autonomous guardian of monetary policy. Inflation has remained stubbornly in double digits, foreign exchange reserves are scarce, and the Birr is under relentless pressure.

Yet, measured against these structural burdens, Mamo’s record is more complex. He presided over one of the most delicate reforms in Ethiopia’s modern economic history: a transition away from a tightly managed exchange rate. He also sought to modernize the institution’s governance, even as doubts persisted over his proximity to the Prime Minister and the limits of his independence. The banking sector has been opened to foreigners under his tenure, while the digital economy has flourished.

"As Governor of the National Bank of Ethiopia, I led this venerable institution through the country's most significant economic reforms in over 50 years. We opened the financial sector to foreign banks, advanced digital inclusion, and secured $10.5B in external financing from partners including the IMF and World Bank, while stabilizing the macroeconomy and restoring investor confidence," wrote Mamo in his farewell message. 

His departure raises more questions than it answers. Did he leave because the reforms had run their course, or because the political constraints of the job proved insurmountable? Ethiopia’s experiment with central bank autonomy has never been about the credentials of one man, but about whether the state is willing to grant the institution the independence it needs. That tension will outlast Mamo’s tenure.