FORTUNE+ VIDEO SPONSORED CONTENTS ADVERTORIALS FORTUNE AUDIO Fortune Careers New TRADE AFRICA New

Fortune Logo
The National Bank of Ethiopia's (NBE) directive released today limits daily and monthly cash withdrawals of businesses to 300,000 Br and 2.5 million Br, respectively. Individual savers are allowed to withdraw a maximum of 200,000 Br a day and one million Birr a month.

The central bank's imposition of limits on cash withdrawals by savers and businesses targets payment instruments other than cash, thereby mitigating liquidity crunches and reducing note printing costs, as well as fighting fraud, its officials said today.


The National Bank of Ethiopia's (NBE) directive released today limits daily and monthly cash withdrawals of businesses to 300,000 Br and 2.5 million Br, respectively. Individual savers are allowed to withdraw a maximum of 200,000 Br a day and one million Birr a month.


However, the directive gave discretion to presidents of financial institutions to approve cash withdrawals in excess with an exception after reviewing evidence submitted by depositors supporting their demand. The financial institutions are required to submit a weekly report showing details of excess cash withdrawals to the central bank no later than Tuesday of the following week.


Signed by Yinager Dessie (PhD), governor of the central bank, the directive becomes effective today, May 19, 2020. The new rule does not apply to cash withdrawals made within and between financial institutions and account holding branches.

Yesterday, the Governor had a discussion with presidents of commercial banks about the new directive that limits cash withdrawals. This was followed by a proposal tabled to the central bank a few months ago, where the Ethiopian Bankers Association recommended a cash withdrawal limit as a solution for the existing liquidity crisis in the banking industry.


PUBLISHED ON May 20,2020 [ VOL 21 , NO 1047]

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.



Related Posts

Editors' Pick

Exclusive Interviews

State Enterprises from Oracles to Apprentices

Dec 22 , 2024 . By TIZITA SHEWAFERAW

Charged with transforming colossal state-owned enterprises into modern and competitiv...

Agenda

Rising Costs, Inflation Threaten Insurance Industry

Aug 18 , 2024 . By AKSAH ITALO

Although predictable Yonas Zerihun's job in the ride-hailing service is not immune to...

Agenda

BREWING DISCONTENT

Jul 28 , 2024 . By TIZITA SHEWAFERAW

Unhabitual, perhaps too many, Samuel Gebreyohannes, 38, used to occasionally enjoy a couple of beers at breakfast. However, he recently swit...

Fortune News

Electric Vehicle Push Leaves Investors in the Lurch

Jul 13 , 2024 . By AKSAH ITALO

Investors who rely on tractors, trucks, and field vehicles for commuting, transporting commodities, and f...

Commentaries

Sharia-Compliant Banks Lose Ground as Interest-Free Windows Sweep the Market

Global Islamic finance, rooted in the prohibition of interest (riba), risk-profit sha...

Who Benefits From a Global Dollar?

President Donald Trump thinks America is only for Americans. The US Dollar, by contrast, is for everyone. Should the BRICS grouping of emerg...

Fineline

Leaders of the National . . .

Leaders of the National Election Board are in a charm offensive mood, of a sort. Last week, they organised a rare tour for members of the me...

When the country’s most. . .

When the country's most senior diplomats and envoys return back to their posts after two-week debriefings, they leave behind a point or two...

Editorial

Ethiopia's Aid Reckoning Demands a Homegrown Rescue Plan

May 10 , 2025

Federal legislators recently summoned Shiferaw Teklemariam (PhD), head of the Disaste...

When Pension Funds Nap Inflation Steals the Blanket

May 3 , 2025

Pensioners have learned, rather painfully, the gulf between a figure on a passbook an...

Policymakers Trudge Down a Path of Punitive Taxation

Apr 26 , 2025

Benjamin Franklin famously quipped that “nothing is certain but death and taxes....

Overseas Job Push Evokes Hopes at Home, Hardship Abroad

Apr 20 , 2025

Mufariat Kamil, the minister of Labour & Skills, recently told Parliament that he...

Gallery

Parliament Approves New Cabinet Members

Oct 6 , 2021

Parliament Approves New Cabinet, Incorporates Opposition Leaders Lawmakers have approved today the nominations of 22 ministers, including three opposition leaders. Two MPs have voted against, while 12 abstained...

2020 in Posterity

Jan 5 , 2021

TIGRAY VOTES DESPITE "NULL & VOID" THREAT

Sep 9 , 2020

IN-PICTURE: LAUREATE'S RECEPTION  

Dec 14 , 2019

PM Abiy Ahmed (PhD) at a Gala Dinner Called for the Awarding of the Félix Houphouët-Boigny Peace Prize

May 6 , 2019

Faces, Voices of Addis Abeba

Apr 26 , 2019

Sunday With Eden

Raising Builders, Not Spenders

Raising Builders, Not Spenders Over lunch recently, my husband and I sat with a young friend from one of Ethiopia's wealthiest families....

Is Struggle the Secret Ingredient in Parenting?

In an age obsessed with convenience and instant gratification, parenting stands at a crossroads. Many of...

Life Matters

When a Comment Cuts Deep, Thank the Shadow

There are moments when a comment from a friend, partner, or colleague strikes a nerve, not with casual ir...

Less Stuff, More Life

There is a little thrill that comes with buying something new, the excitement of having the means, walking out with a bag in hand. That mome...