Central Bank Outlaws Transactions with Old Notes

Nov 21 , 2020


The National Bank of Ethiopia (NBE) has outlawed business transactions using the old banknotes as of December 1, 2020, two weeks ahead of the final currency changeover deadline. The entire demonetisation process, which cost the government 3.7 billion Br to print the notes, is expected to be finalised on December 15, 2020. Launched in mid-September, the three-month demonetisation process also introduced a new 200 Br denomination and changed the colour and the security features of the 100 Br, 50 Br and 10 Br notes. The five Birr note will stay in circulation until it is changed into a coin. The wide circulation of banknotes outside of banks and the country, as well as problems with contraband and illegal activities, were all instigators of the currency change, according to government officials. In March the Ethiopian Bankers Association reported that 113 billion Br is circulating outside the banking system, contributing to the financial industry's liquidity crisis. The 200 Br denomination is purple, while the 100 Br and the 50 Br denominations are light blue and orange, respectively. The colour of the 10 Br note has also been changed to green. First introduced in 1915 during the regime of Emperor Menelik II, Ethiopia has so far changed bank notes five times, including this recent change.


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