By Ahmed Mohammed
The National Bank of Ethiopia (NBE) disclosed that payment made to any potential gold supplier will be based on the international gold price of the same day multiplied by the foreign exchange rate it issues on that specific day.
The announcement comes following the NBE’s momentous decision to lift foreign exchange restrictions in what can be considered a sweeping reform.
In a historic departure from its previous controlled policies, the NBE has granted permission to commercial banks to freely negotiate foreign currency exchange rates with clients and amongst themselves.
The nation’s central banking authority announced that it will buy gold exclusively from producers and suppliers and will encourage suppliers by changing the price at which it buys from time to time.
The foreign exchange policy has been changed since July 22, 2016, introducing a market-driven policy framework.
The chief banking regulator further made it clear that the payment made to any gold supplier will be multiplied by the international gold price of the very day issued by it.
The NBE finally called on potential gold producers and suppliers to obtain the daily foreign exchange rate from the National Bank's website and get the payment for the gold they supply from the branches of the Commercial Bank of Ethiopia where they sold the gold.//