Central Bank Limits Groups' Cash Holding to 1.5m Br

Oct 3 , 2020

The National Bank of Ethiopia (NBE) has outlawed holding over 1.5 million Br worth of banknotes jointly, which will now lead to confiscation. It previously banned individuals from holding cash over the stated value. Issued on September 29, 2020, with the signature of Solomon Desta, vice governor of the central bank, it amended the directive that was issued in the middle of last month for the banknote redemption process. Initially, the regulatory bank issued a directive dubbed the Legal Tender Protection Directive in mid-August that banned individuals from holding over 1.5 million Br. The directive did not specify the penalties the offenders could face. “Any hoarding above this limit shall be strictly prohibited and subjected to penalty,” read the directive. However, the latest directive that was issued in mid-September stipulated that cash found with individuals in excess of the limit is subjected to confiscation.