In a statement issued Thursday, NBE said based on its revised foreign currency retention policy, the exporters will be required to deposit the remaining 50 percent to commercial banks.
Previously, exporters were mandated to sell half of their foreign currency earnings to banks immediately, with the remaining portion converted into local currency within one month.
In an interview with state media, Mamo Mihretu, Governor of the National Bank of Ethiopia (NBE), explained that the measure, which he described as “temporary,” is intended to secure a consistent flow of foreign currency.
According to the governor, the country’s foreign currency reserves have grown from $1.4 billion prior to the recent macroeconomic reforms to the current level of $3.4 billion.
Mihretu revealed that commercial banks have successfully cleared their outstanding foreign currency debt. He noted that they have fully settled accumulated debts exceeding $500 million, which had previously remained unpaid under letters of credit (LCs).
“Consequently, they are now debt-free and are expected to manage payments solely for new LCs moving forward,” he added.
He also highlighted that, over the past three months, commercial banks have, on average, acquired approximately $500 million in foreign currency from exports each month. In total, during this period, banks have purchased around $1.2 billion, enabling them to sell up to $1.7 billion to those in need of foreign currency.
“The macroeconomic reform, which has been in effect for over 100 days, is already showing numerous positive outcomes,” he stated.
MG/abj/APA