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October 5, 2017 (Ahadu Radio) — The National Bank of Ethiopia (NBE) has reinforced that the difference between the rates at which commercial banks buy and sell foreign currency must not exceed two percent. This measure aims to narrow the gap between these rates in line with international standards.
In a letter addressed to commercial banks, the NBE highlighted the importance of maintaining this two percent margin. The bank has been monitoring the foreign exchange market since the announcement of the new exchange rate system and stressed that the practice of setting exchange rates should align with international norms.
The National Bank also noted that while banks can continue to set their own buying and selling prices for foreign currency in agreement with their customers, they are required to publish these rates daily. Furthermore, the NBE has mandated that commercial banks clearly separate the commissions charged for currency transactions from the actual sale price of the foreign currency.
Previously, commercial banks bundled their commission fees with the foreign currency sale price. The National Bank has now ordered that these two components be presented separately and has instructed banks to implement this change by tomorrow.
This move is part of the NBE’s broader efforts to enhance transparency and ensure the proper functioning of the foreign exchange market in Ethiopia.
