National Bank of Ethiopia Launches New 50% Foreign Currency Retention Policy Starting Tomorrow

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The National Bank of Ethiopia (NBE) has announced that starting tomorrow, exporters will have the option to sell 50 percent of the foreign currency they generate immediately while retaining the remaining 50 percent in their accounts indefinitely.

Previously, exporters were required to sell half of their foreign currency earnings to banks upon receipt and the remaining half within a month. According to Mamo Mehretu, Governor of the National Bank of Ethiopia, this temporary system was initially put in place to ensure a stable flow of foreign currency in the country. However, the new policy offers more flexibility by allowing exporters to keep the second half of their earnings indefinitely.

“This means exporters will no longer be compelled to sell their remaining foreign currency within a month,” said Ato Mamo. He noted that this change aims to support exporters by providing them with more control over their foreign currency earnings, ultimately contributing to a more stable economic environment.

The new policy adjustment reflects the NBE’s ongoing efforts to balance currency flow while addressing the needs of the export community.

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