ADDIS ABABA – The Ministry of Finance has announced the revocation of the Franco-valuta system, which was reintroduced in August 2024 as a temporary measure to curb inflation and hard currency shortages.
In a letter sent to the National Bank of Ethiopia and the Customs Commission, the Ministry stated that all Franco-valuta transactions must be completed within two weeks.
It also expressed thatthe shift aims to create a more sustainable imports of essential goods like oil and food products, which were previously transacted under the Franco-valuta system.
This system was introduced to control inflation during macroeconomic reforms and helped stabilize prices by allowing manufacturers access to necessary resources.
Businesses must submit the required documentation to finalize customs processes, the ministry stressed, indicating that all Franco-valuta import permissions will be revoked after this period.
The temporary policy was intended to control inflation and manage currency outflows. Hereinafter, the commercial banks will manage foreign currency allocations for importers, nullifying the Franco-valuta system.
By MENGISTEAB TESHOME
THE ETHIOPIAN HERALD SATURDAY 9 NOVEMBER 2024
