NBE to Grant Licenses to Private FX Companies Soon

Ethiopian National Bank (NBE) will soon grant licenses to private foreign exchange (FX) companies. The sale and purchase of dollars and other foreign currency by individuals and joint ventures will start soon, said Ethiopian National Bank this week.

Ababayu Durefa, director of foreign exchange control at the National Bank, said in a discussion organized by the Addis Ababa Chamber of Commerce on the foreign exchange system this week that preparations have been completed by the National Bank to issue trade licenses to individuals and joint ventures for buying and selling dollars.He said that the Ministry of Trade and Regional Cooperation is completing the work to implement this. Apart from the banks, individual and joint ventures will start working on buying and selling dollars soon, and many people have applied to do this.

Earlier this month, Ethiopian government announced liberalization of foreign exchange market. Private banks were allowed to buy and sell foreign currency. Later, the national bank held a dollar auction. Private banks purchased dollars from the national bank.

The new macro economic reforms allow private businesses as well to buy and sell foreign currency. It seems that in coming days, National Bank of Ethiopia (NBE) will complete preparations to authorize private companies to purchase and sell foreign currency.

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