ADDIS ABABA – In an effort to address the demand for foreign currency, National Bank of Ethiopia has disbursed USD 100 million for 16 private banks, according to Fana Broadcasting Corporate (FBC).
Previously the government used to inject foreign currency in the market through the National Bank only. The National Bank in turn disburses the foreign currency through policy execution banks only. Since the last two weeks NBE has started disbursing foreign currency through private banks to enable them supply currency for priority areas.
The private banks indicated that previously their customers withdrew all their deposits in local currency in order to obtain foreign currency to import goods.
Though NBEs latest action can address the temporary imbalance in the market of banks, it is not a major solution to the country’s shortage of foreign currency.
According to Board Chairperson of Ethiopian Private Banks Association, Addisu Haba, the issue needs sustainable solution assisted through research.
The Ethiopian Herald June 1/2019
BY STAFF REPORTER
