ADDIS ABABA–The revised directive for diaspora account regulation can encourage account holders as it has lifted the USD 50,000 maximum threshold to deposit at a time, but there are some more articles in the directive that should be revised in order to further increase the foreign currency inflow to the country, diaspora account holder stressed.
Mustafa Ali, a diaspora account holder says as the directive has lifted the maximum threshold of 50,000 USD for saving at a time, those who are entitled to save foreign currency can remit as much foreign currency as they can in their accounts here. But the directive restricts the source of remittance only to the country where the account holder lives as a diaspora, and the remittance to be credited by the account holder itself.
“An account holder may return home to do some business. Yet he/she could have source of income in various countries. The new directive doesn’t allow the account holder to remit his/her money from other countries where he/she owns business.” Mustafa said.
Despite the unreserved efforts , this reporter couldn’t obtain the exact amount foreign currency saved by the diaspora account holders whose number is said to be increasing following the amended Directive No FXD/55/2018 by the National Bank of Ethiopia. According to the press release by the National Bank of Ethiopia (NBE), Ethiopians living abroad are allowedto open book account and deposit foreign currency in local banks. Deposits in the balance is kept in USD, Pound Sterling, and Euro.
Deposits that are made in currencies such as Canadian Dollar, Japanese Yen, Australian Dollar, and UAE Dirham shall be converted to any of the three. The account shall be credited only by the account holder with resources originated from place of residence abroad in one or a combination of direct credit account from the place of residence through the banking system, a signed and sealed foreign currency declaration from Ethiopian Revenue and Custom Authority, learnt from the press release.
Hanna Seifu, International Banking Service Director of the Commercial Bank of Ethiopia,remarked that there is an increase in the number of diaspora account holders in the year 2018/19.
The number of account holders in the first three months of 2017/18 was591 whereas it increased to 791 in the same months of 2018/19, according to her. Their bank is working with the embassies of Ethiopia in different countries to create awareness about the services rendered by the bank, legal transfer of money, and overall information about the bank to create awareness in the minds of the Ethiopians living abroad, explained Hanna.
The bank will facilitate to render services such as savings to either build or buy houses, establish relationship with other financial institutions abroad, and set various rewards for those who transfer their money through the bank, she added. EbbisaDeribe, Marketing and Communication Director of Awash International Bank, on his part, said that 1086 Ethiopian diasporas have opened a new account within the first six months of 2018/19 in the bank.
There is increase in the number of the account this year compared to the same time of previous year, he added. Ebbisa added that the bank provides loans for buying cars, houses, and give different instruments as an incentive to the diaspora account holders. 20 percent of the payment for housing is paid by the account holders and 80 percent is covered by the loan from the bank which is to be returned within 25 years, as to him.
The directive allows Ethiopians living abroad to open book account and use foreign currency account in local banks. Deposits in the balance is kept in USD, Pound Sterling, and Euro. Deposits that are made in currencies such as Canadian Dollar, Japanese Yen, Australian Dollar, and UAE Dirham shall be converted to any of the three, according to the directives.
Herald February 9/2019
BY GETAHUN LEGESSE
