Kedamen Keseat interview with Ethiopian artist Gedion Daniel. My fall and rise is a lesson for others Artist Gedion Daniel
The association predicted an increase in investment; as such accumulated money in cash form, if channeled in the banking system, will be more productive. It could also contribute to curbing liquidity shortages, and become a source of investment finance.
The currency note change, in its long term impact is also predicted to improve the effectiveness of monetary policy instruments. Demonetization could contribute to accelerating digitalization and fintech as they are the future of the financial system that is known to reduce transaction costs in well-developed system.
However, EEA urged the government to be cautious about timing being critical factor in which currency in circulation may decline due to slow replacement of notes. EEA recommended that it requires speedy implementation of demonetization within a short period of time.
EEA also urged that optimal mix of the currency denomination has macroeconomic consequences in which the introduction of higher denomination (200-birr notes) may result in a shift of preferences towards holding currency instead of deposits. Rural and remote area penetration of new currency is also pinned as point of concern that may require careful handling.
- EBS TV