The re‐establishment of the national monetary and banking system in Ethiopia 1941–1963

Abstract

Ethiopia may be ranked among the longest surviving states, not only in Africa, but in the world, as it has a history going back to the ancient Axumite kingdom (first century AD). In fact, this inland country, because of the mountainous nature of the territory and the indomitable spirit of its inhabitants, has been able to preserve its independence, national identity and cultural heritage throughout the centuries - unlike most African countries. Banking in Ethiopia (previously known as Abyssinia) began when the Bank of Abyssinia was established in 1905. In 1931, however, this institution was liquidated, and its assets and liabilities as well as its premises and staff were taken over by the newly established state-owned Bank of Ethiopia. The Bank of Ethiopia, in turn, closed its doors after the occupation of the country by the Italian army in 1936.