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The Ministry of Finance of the Federal Democratic Republic of Ethiopia has issued a directive announcing the end of the Franco valuta import system for specific commercial goods. This decision affects imports of goods like oil and other food products previously allowed under this system, which was introduced to mitigate potential inflation during the implementation of macroeconomic reforms.
According to the Ministry’s letter addressed to the National Bank of Ethiopia and the Customs Commission, the Franco valuta system had a positive impact on stabilizing prices by enabling manufacturers to import essential production resources during a transitional economic phase. The Ministry noted that this approach was designed to prevent inflationary pressures on key commodities.
The directive specifies that commercial transactions involving Franco valuta imports must be finalized within two working weeks of the letter’s issue date. Businesses are required to submit all necessary legal documentation to the Customs Commission to complete the customs formalities for these imports. After this period, all permissions for Franco valuta-based imports will be rescinded.
This marks a shift toward a more sustainable system for importing commercial goods, replacing the Franco valuta system, which was initially implemented as a temporary measure.
