Central Bank Revises Gold Premiums Amid Supply Chain Chaos


Central Bank Revises Gold Premiums Amid Supply Chain Chaos

The National Bank of Ethiopia (NBE) has adjusted its gold procurement strategy in response to major supply chain disruptions over the past three years. Last week, the central bank introduced a tiered pricing system, offering premiums of 60pc on supplies ranging from 50gm to three kilograms, and up to 72pc for quantities exceeding 30Kg. This marks the third consecutive year of revisions to the central bank's gold premium rates, following last year's increase to a flat rate of 35pc. Illicit mining activities, particularly those conducted by unlicensed foreign operators, have impacted the country's gold production, which fell short of meeting 35pc of its targets last year. In response to the high incidence of contraband in the sector, the Ministry of Mines revoked special small-scale mining licenses. Minister Habtamu Tegegn informed the Parliament's Standing Committee for Industrial & Mining Development Affairs about the severity of the contraband issue, with some regions such as Sidama and Oromia achieving only 1.87pc and 24.13pc of their production targets, respectively. Artisanal miners, using traditional tools for gold extraction, increasingly resort to selling their gold through contraband channels, where prices can exceed twice the official rates. This year, nearly three tons of gold were produced, with 80pc sourced from industrial mining projects, predominantly led by MIDROC Gold


Radar

Coffee Exports Bring in $1.5B in Third Quarter

Ethiopia has earned 1.5 billion dollars from coffee exports over the nine months of the fiscal year. The country had set a target to earn a little over a billion dollars by exporting 201,959tns of coffee during the same period. According to Adugna Debella (PhD), director general of the Ethiopian Coffee & Tea Authority, the export strategy continues to focus on major international markets, with the top 10 destinations, including Saudi Arabia, Germany, and the United States (SU), accounting...


Radar

Central Bank Holds Fourth Exchange Auction

The National Bank of Ethiopia(NBE) sold one dollar for 131.4961 birr in its recent auction. It was reported that 26 banks participated in this auction, which took place last week on Thursday. In a statement issued by the National Bank  following the auction, it was indicated that 70 million dollars was offered for the event. Subsequently, it was reported that 96 pc of the foreign exchange needs of the participating banks were met. In the previous auction, held 15 days ago, the bank had of...


Radar

City Registers 64,075 Births in Fiscal Year

The city has exceeded its birth registration target for the first nine months of the fiscal year, registering 64,075 children—71.15pc more than the set goal of 58,342. This success, with a registration coverage rate of 109.63pc, is largely attributed to the efficiency of the one-centre birth registration service system, which has been rolled out across health centres and courts. The total number of vital events registered, including births, adoptions, marriages, divorces, and deaths, reache...