Central Bank Tunes Forex, Cash Rules


Central Bank Tunes Forex, Cash Rules

Regulators at the central bank have introduced new rules on foreign exchange transactions as forex reserves dwindle and the federal government struggles with a widening budget deficit and falling external loan disbursements. The directive bans the use of foreign currency in local transactions. Central bank Governor Yinager Dessie (PhD) has also lowered the period of time that returning residents can hold on to foreign currency by two thirds to 30 days. Travellers entering or departing the country are allowed to carry a maximum of 3,000 Br in cash, while the ceiling is 10,000 Br for those travelling to neighbouring Djibouti. The directive quadruples the amount of foreign currency that nationals can bring into the country without a customs declaration to 4,000 dollars, while foreigners are not required to disclose less than 10,000 dollars to customs officials. The threshold was previously 3,000 dollars.


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Abyssinia Bank Taps to Digital Loan Solution

The Bank of Abyssinia (BoA) is moving forward to provide banking solutions facilitating microloans. The Bank has hired an Indian-based tech vendor Newgen Software Company, that bagged the international bid on December 22, 2022. Over 10 companies have shown interest in the bid floated by the bank four months ago. The solution provider has committed to completing the project in six months with Yonas Daniel, regional manager for Newgen, and Menbereselassie Gebrekidan, procurement director at Aby...


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ROLLING CREDIT

Bank of Abyssinia rolls out banking services on a truck around Meskel square in the capital. With less than half of Ethiopian adults having access to bank accounts, financial inclusion is a major issue. The central bank revealed in August 2022 that 8,944 commercial bank branches exist in the country. The 30 commercial banks currently in operation offer credit services to less than 400,000 customers charging an average of 17pc interest on asset-backed loans...


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SPREADING HORIZONS

Left) Elias Woldu and Mesnbet Shinkute sign a Memorandum of Understanding on behalf of the Ethio-American and Addis Abeba Chamber of Commerce & Sectoral Association, respectively. Some estimates put the number of Ethiopian diaspora living abroad at over two million people, larger than the population of several small nations. Continued economic and political deprivation has forced many to leave the country for better opportunities. While migration to other countries is still high, the number...