Central Bank of Ethiopia Announces Forex Retention Changes

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.

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