In a policy shift aimed at enhancing foreign currency flexibility for exporters, the National Bank of Ethiopia (NBE) announced that exporters would be allowed to retain 50 percent of the foreign currency they generate indefinitely. Under this new system, exporters can sell half of their foreign currency earnings immediately and hold the remaining half in their accounts in Ethiopia without time restrictions. Previously, exporters were required to sell 50 percent of their foreign currency earnings immediately to banks and were obligated to sell the remaining half within a month. “This new policy will provide exporters with the freedom to manage half of their earnings on their terms, eliminating the month-long selling deadline,” Mamo Mehretu said. The government’s macroeconomic reforms, which include overhauling foreign exchange management, have allowed the foreign exchange rate to be determined by the market rather than through direct government intervention.

Source: Ethiopian News November 14, 2024 12:49 UTC