When you buy a Treasury Bill you choose a fixed period of 28, 91, 182, or 364 days, and receive the full face value at the end.
But sometimes you may need cash sooner, which raises the question: can you sell before maturity?
Since July 2025, Government of Ethiopia T-Bills are listed and traded on the Ethiopian Securities Exchange (ESX). The supporting infrastructure includes the National Bank of Ethiopia, the Ethiopian Capital Market Authority, the ESX, and the Central Securities Depository.
What selling before maturity means
It means transferring your Treasury Bill to another buyer before the original maturity date. Instead of waiting for the face value, you sell the bill in the secondary market through a licensed intermediary. The buyer pays an agreed market price, and receives the face value when the bill matures.
Example: bought a 182-day bill but need cash after 60 days? You can ask your licensed intermediary whether it can be sold before maturity.
Is it guaranteed?
No. Selling before maturity depends on market liquidity: how easily an investment can be turned into cash without a major delay or price cut. Even a listed, tradable bill still needs:
A listed security is not the same as instant cash; whether you can sell depends on demand at the moment you want to.
Why the price may differ from face value
The full face value is only paid at maturity. Before then, the bill is priced on its remaining days and the yield buyers currently require. Your selling price can be affected by:
Hold to maturity vs sell early
The simplest approach: buy at a discount, hold to the maturity date, receive the full face value. Easy to plan, because you already know the maturity date, face value, expected amount, and holding period. Best when you don't need the money before maturity.
Offers possible liquidity, but adds uncertainty: you may not know in advance whether there's a buyer, what price they'll offer, how fast it settles, what fees apply, or whether your return will shrink. Useful in a genuine cash crunch, but not guaranteed liquidity.
Planning your liquidity
Before buying, ask yourself the single most important liquidity question:
If the answer is no, choose a shorter tenor, or invest only the portion of your money you won't need soon.
Pick a tenor by when you'll need the money. A higher return isn't useful if you need cash earlier and can't sell easily.
Don't put emergency money in T-Bills unless you're fine waiting. If a bill matures in 182 days, assume the funds are committed for 182 days.
Even with secondary trading available, the price and timing of a sale are not guaranteed.
Splitting funds across maturities creates staggered dates and reduces the need to sell before maturity.
Questions to ask your intermediary
Before you invest, not when you suddenly need cash, ask:
A laddering example
Say you have ETB 100,000. Putting it all in a 364-day bill but needing cash after three months could force an early sale at an uncertain price. Splitting it staggers your maturities instead:
If you can't sell
If no buyer is available before maturity, the usual option is simply to keep holding the bill. On the maturity date, the face value is paid through the settlement process, with the Central Securities Depository supporting holding, clearing, and settlement.
Invest only the amount you can comfortably hold until the maturity date.