The National Bank of Ethiopia (NBE) has revised its gold pricing policy to value purchases at current international market rates, the central bank said on Wednesday.
The move comes after Ethiopia introduced a more market-driven exchange rate regime this week, allowing commercial banks more flexibility to set rates rather than intervening to strengthen the birr currency.
Previously, the NBE paid suppliers premiums above global gold prices - 60 percent for shipments between 3kg to 30kg. The new policy eliminates those premiums to better reflect fluctuations in international gold markets.
Gold is a major export and source of foreign currency for Ethiopia's landlocked economy. The central bank is a large buyer of domestically mined gold, which it stockpiles and sells internationally.