The National Bank of Ethiopia (NBE) altered the forex retention and distribution rules, where exporters will have to surrender 50% to the central bank and 10% to the commercial banks.
The changes announced today include adjusting the threshold borrowing rate of commercial banks from 16% to 18% while limiting direct federal government borrowing to one-third of the budget this year.
Governor Mamo Mihretu announced the reforms today at the central bank headquarters on Sudan Street, indicating the ambition to curtail inflation at 20% in the next Ethiopian fiscal year.
