Bank of Banks (Part 1): The Evolution of the National Bank of Ethiopia

The story of banking is nearly as old as civilization itself, evolving alongside human societies from ancient times to the modern era. From the moment people sought a better way to trade—whether using grains, fabric, or salt—finance became an essential part of daily life. As societies grew, so did the need for a common currency, giving rise to money. But money, even with coins and paper currency, alone wasn’t enough. People needed trust and assurance that their wealth was safe and its value stable. 

This need gave birth to central banks. Much like a wise elder guiding a village, these institutions took on the responsibility of regulating the money supply, safeguarding financial systems, and maintaining economic stability. Over the centuries, they became the architects of national economies, earning the title "banks of banks." Beyond their role as financial regulators, they became the cornerstone of modern economic systems, providing nations with the tools to manage their economies—if used properly.