National Bank of Ethiopia issues directive to weaken black market

Addis Ababa, December 18, 2017 (FBC) –The National Bank of Ethiopia (NBE) said it has prepared a directive which would help to weaken the black market for hard currency.

According to the new directive, importers are obliged to ask for foreign currency from the bank based on the international prices of the commodities which they will import. 

Chief Economist and Vice Governor of the bank, Dr Yohannes Ayalew, said the bank has already circulated the directive to commercial banks and they have begun applying it.

Ethiopia devalued birr by 15 percent last October to encourage exports.

It also raised interest rate to 7 percent from 5 percent to stimulate savings.