Ethiopia's Ministry of Finance has banned the use of Franco Valuta permits, a measure introduced three months ago to stabilize the market, citing sufficient foreign currency supply from banks, and given importers a two-week window to clear their goods.
The Franco Valuta permit was reintroduced for all types of goods after the floating of the Ethiopian birr, which has lost over 100 percent of its value since its introduction.
The permit allowed importers to bring in goods without using the official foreign exchange market, helping to stabilize the market, particularly for edible oil and industrial products.
According to the Ministry, the permit helped avert potential inflation and allowed for a smooth importation of essential goods. However, with banks now providing enough foreign currency, the government has decided to ban the permit, the Ministry added.
Importers who had obtained the permit before the ban have been given a two-week window to report to the customs commission and clear their goods.
