The National Bank of Ethiopia has announced a policy change allowing exporters to sell 50 percent of their foreign exchange earnings immediately and hold the remaining 50 percent indefinitely in their local accounts.
The move, effective from Thursday, represents a major shift from the previous requirement that exporters sell 50 percent of their earnings to banks immediately and the rest within a month. This policy change is part of the government's broader efforts to increase foreign exchange inflows, which have recently shown improvement following the floating of the birr.
Governor Mamo Mihretu explained that the temporary system was previously implemented to ensure a stable flow of foreign exchange. However, the new policy is expected to offer a more permanent and exporter-friendly approach.
Ethiopia's export revenues are projected to reach five billion US dollars this year, a significant increase from the 3.5 billion US dollars recorded in the previous year. The latest policy shift is expected to further bolster the country's export performance and strengthen its foreign exchange reserves.
