Forex Retention Ratio Under Consideration

The foreign exchange ratio where the central bank appropriates 70pc of earnings by importers to the public sector is under review, disclosed a senior federal government official.

Hassen Mohammed, state minister for Industry, told a panel of European businesses gathered today at the Hyatt Hotel, that his Ministry has taken the issue to the federal macroeconomic team, chaired by the Prime Minister, for review.

"It's under consideration," he told a panel hosted by the European Union Business Forum-Ethiopia, a lobby group of 155 EU companies investing in Ethiopia, such as Unilever and Heineken.

However, he failed short of stating the ratio changes his Ministry proposed.

Ethiopia suffers a wide trade and balance of payments deficits, dwindling its foreign exchange reserves only enough to cover less than a month's worth of imports. It imported items valued at over 17 billion dollars last year against four billion dollars in imports.

Authorities at the National Bank of Ethiopia (NBE) have imposed a forex retention policy for exporters to keep 30pc of the forex they generate. This policy remains a profound source of grievances and misgivings for businesses and banks.

Share This Post

Facebook

Twitter

Google+

Cookie	Duration	Description
cookielawinfo-checkbox-analytics	11 months	This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional	11 months	The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary	11 months	This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others	11 months	This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance	11 months	This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy	11 months	The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.

Forex Retention Ratio Under Consideration

Related Posts

Most read

Latest News

Editor's pick

Commentaries

Ethiopia Bets Big on Floated Currency as Kenya Masters the Art of Stability

Services, the New Road to Development

Fineline

Leaders of the National . . .

When the country’s most. . .

Editorial

The Bureaucrats Turn to Masters of Misrule, Architects of Uncertainty

Addis Abeba's Gleaming Facade Masks a Parched Metropolis

When More of Everything Leaves Less in the Bank

Fueling Reform, the Petroleum Sector Caught Between Monopoly Missteps, Market Liberalisation

Gallery

Parliament Approves New Cabinet Members

Sunday With Eden

A Journey Through Nature, Culture, History

Overcoming Emotional Impulses in Decision-Making

Life Matters

When Appearance Dictates Respect, Attention

Inadequate Regulation Leaves Tenants Vulnerable to Arbitrary Rental Hikes

Drop us a message

COVID UPDATE

Forex Retention Ratio Under Consideration

Ethiopia Bets Big on Floated Currency as Kenya Masters the Art of Stability

Services, the New Road to Development

Leaders of the National . . .

When the country’s most. . .

The Bureaucrats Turn to Masters of Misrule, Architects of Uncertainty

Addis Abeba's Gleaming Facade Masks a Parched Metropolis

When More of Everything Leaves Less in the Bank

Fueling Reform, the Petroleum Sector Caught Between Monopoly Missteps, Market Liberalisation

Parliament Approves New Cabinet Members

A Journey Through Nature, Culture, History

Overcoming Emotional Impulses in Decision-Making

When Appearance Dictates Respect, Attention

Inadequate Regulation Leaves Tenants Vulnerable to Arbitrary Rental Hikes

Drop us a message

COVID UPDATE

Recommend Links;