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.


Radar

Parliament Nods for Cabinet Appointments

Federal legislators have approved five cabinet-level positions last week with a member of Parliament (MP) voted against and two abstentions were counted. Gedion Timotheos (PhD) leads the charge as the new minister of Foreign Affairs, filling in Taye Asqeselassie's shoes, where he stayed briefly before becoming the country's president. With law degrees from Addis Abeba and Central European universities, Gedion was previously Attorney General and Minister of Justice. Joining him in the redev...


Radar

Abyssinia Group Eyes Expansion with IFC Funding

Abyssinia Group of Industries (AGI), a leading East African steel producer, is poised for significant expansion owing to a proposed investment from the International Finance Corporation (IFC) which is considering a financing package of up to 50 million dollars, including parallel loans in local currency. Headquartered in Kenya, AGI operates two steel plants in Ethiopia, six in Kenya, and has mining activities in Uganda. AGI currently produces 660,000 metric tons of steel annually and employs...


Radar

Fitch Acknowledges Easing Financial Pressures, Enhanced Macroeconomic Stability

Fitch Ratings has upgraded Ethiopia's Long-Term Local-Currency Issuer Default Rating (LTLC IDR) to 'CCC+' from 'CCC-', citing easing financing pressures, improved macroeconomic stability, and increased confidence that local-currency obligations will not be part of the ongoing debt restructuring. This positive development comes as the government implements key reforms and secures renewed concessional external financing. The ratings agency has taken note of the introduction of a market-based ex...


Back
WhatsApp
Telegram
Email