The National Bank of Ethiopia (NBE) has issued a directive limiting the amount of cash that individuals can keep in their homes or elsewhere.
Briefing journalists on Tuesday Dr Yinager Dessie, Governor of the National Bank of Ethiopia said the directive forbids storing more than $42.857 out of banks.
However, individuals can store up to $42.857 in their homes, he said during a press conference organized to brief the media on the four directives issued by the bank.
He said if anyone is found keeping or carrying more than the stated amount of cash, they will face prosecution and punishment.
Meanwhile, Ethiopian commercial banks that have been facing a crisis of loanable funds have something to cheer about, as the apex bank allowed them to borrow funds from foreign banks and financial institutions to meet the demand for credit in the country’s economy.
Two months ago, the NBE limited cash withdrawals for individuals and businesses from commercial banks and other financial institutions.
The limits aren’t without justification said National Bank Governor Yinager Dessie who claimed the move will manage liquidity as well as control money circulation that would help prevent crimes and tax evasion.
Accordingly, an individual can withdraw up to $2800 a day and half a million Birr in a month.
Businesses are allowed to withdraw a maximum of $5700 a day but not exceeding $28000 a month.
MG/as/APA