July 19, 2024

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national bank of Ethiopia new gold policy

National Bank of Ethiopia Announces New Policy of Gold

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The National Bank of Ethiopia has updated its gold purchasing policies. The bank now offers a tiered system where the percentage of the global market price paid to suppliers varies based on the quantity of gold being sold.

For smaller quantities, the bank pays a premium over the global market price. For gold between 50 grams and 3 kilograms, the National Bank of Ethiopia pays 60% of the global market price. The gold between 3 kilograms and 30 kilograms, the bank pays 67% of the global market price. For gold over 30 kilograms, the bank pays 72% of the global market price.

This structure is different from the previous guidelines, which had more specific and varied premiums for different gold quantities. Under the 2015 guidelines, the bank paid 35% above the global market price for gold between 50-150 grams, 52% above the global market price for gold between 50-1000 grams, 55% above the global market price for gold between 1000-5000 grams, and 60% above the global market price for gold over 5000 grams.

The new system simplifies the structure and provides a clearer framework for suppliers.

The new pricing structure for gold suppliers in the National Bank of Ethiopia’s revised gold purchasing policies is likely to have both positive and negative impacts on the profitability of small-scale gold suppliers.
Moreover, the new structure offers higher premiums for gold sold in larger quantities, which could increase revenue for small-scale gold suppliers who can manage to accumulate larger quantities.

Moreover, the tiered system simplifies the pricing structure, making it easier for small-scale suppliers to understand and plan their operations.

The new structure by National Bank of Ethiopia may result in lower margins for small-scale suppliers who sell smaller quantities of gold. This could be particularly challenging for those who operate with limited resources and have higher costs.

The higher premiums for larger quantities of gold could lead to increased competition among small-scale suppliers in Ethiopia, making it harder for them to secure larger quantities and maintain profitability.

Small-scale suppliers may face challenges in accessing the resources and technologies needed to increase their gold production and meet the higher premiums for larger quantities.

You can check the updated National Bank of Ethiopia gold price