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The National Bank of Ethiopia has implemented a new policy for purchasing gold, which links the payment to the daily international gold price and the foreign exchange rate set by the bank. This means that the amount paid to gold suppliers will be calculated by multiplying the current international price of gold with the exchange rate issued by the National Bank every day.
This policy shift aims to provide a more transparent and fair system for determining the value of gold transactions in the country. By tying the gold price to the international market, the National Bank ensures that local suppliers receive payments reflective of global market conditions. This approach is part of the bank’s broader strategy to maintain a market-driven policy framework, adjusting foreign exchange policies to better align with economic realities.
The National Bank of Ethiopia is the exclusive buyer of gold from domestic producers and suppliers. The bank encourages these suppliers by regularly updating the purchase price, which is influenced by fluctuations in the international gold market and the foreign exchange rate. This dynamic pricing model is intended to provide fair compensation to suppliers and to incentivize the legal sale of gold within the country, reducing the risk of smuggling and illegal trading.
Gold producers and suppliers can easily access the daily foreign exchange rate through the National Bank’s official website. This transparency allows them to accurately calculate the expected payment for their gold. Payments are processed through branches of the Commercial Bank of Ethiopia, where suppliers can receive their money on the same day of the sale.
This policy also supports the country’s economic goals by stabilizing the gold market, attracting more suppliers to operate legally, and ultimately contributing to the national economy. By offering competitive prices and a reliable payment system, the National Bank of Ethiopia aims to strengthen its role as a central player in the gold market and support the financial stability of gold producers and suppliers.
