Central Bank Amends Gold Premium Fee

May 6 , 2023

The premium fee for gold miners has seen up to a 60pc increase from the international price. The officials at the National Bank of Ethiopia (NBE) has decided to increase the fee following a discussion with the board members last week. The newly set premium prices entail 35pc for supplies weighing up to 150 grams, 52pc for a kilogramme and 55pc for five kilogrammes. The central bank raised the premium fee for artisanal miners from 29pc to 35pc last year. Despite resource availability, foreign currency earnings from gold exports have been declining. Governor Mamo Mihretu cited security issues and contraband trade as the main reasons. He said a task force led by the Information Network Security Agency is in place to secure the areas, increase production and enforce legal trade. Officials hope to encourage artisanal miners to enhance their gold production with the new stipulation. The governor also dismissed insinuations of an impending one-time currency devaluation as unfounded. A tight monetary and fiscal policy marked by a decrease in the supply of credit availed to the government was indicated as the governor's impending strategy of the central bank. As monthly inflation rates climbed to 34pc, the tight clamp down on the money supply was insinuated as holding the promise of bringing down the galloping inflation. The combined tightening of monetary, fiscal and lending priorities is expected to alleviate the forex crunch. The governor also regarded the 69pc increase in lending by commercial banks as indicative of the positive results that have been brought about over the last nine months.