National Bank of Ethiopia to implement new monetary policy
Addis Ababa, August 31, 2021 (FBC) – National Bank of Ethiopia to implement new monetary policy in a bid to control supply of money in the economy.
The new monetary policy will increase the statutory reserve requirement, from 5 to 10 percent, effective September 11, 2021. The banks will be required to transfer 50 percent of their foreign exchange holdings to the national bank.
The amount of money that banks borrow from the National Bank to meet reserve requirements will also increase from 13pct to 16pct, according to the new policy.
The regulation on the use of foreign currencies generated through banks has been revised based on the new policy.