National Bank of Ethiopia received its first request for 250 grams of 18 carat of gold from Teklu Desta Jewellery. 
The order for the minimum amount set by the central bank five months ago by the regulation compelling goldsmiths to purchase gold bars exclusively from it as of November of last year.
Teklu Desta has become the first Jeweler to purchase the gold from the central bank with other goldsmiths discouraged by the higher rates set by the bank.
Teklu Desta made the request for 250 grams although it has a declared demand of 930 grams for this quarter because the price is expensive and the jeweler is testing if buying at the rates set by the central bank is profitable according to Esayas Teklu, Marketing Manager with Teklu Desta.The central bank adds 5% for traditional miners and 0.05% service charge on the day’s international rates.
As per the current international rates and the sum added by the national bank the order put in by Teklu Desta is estimated at 58.2 dollars per gram without including value-added tax.
Jewelers will have no choice but to resort to buying used and damaged gold jewelry from private individuals as the central bank is not open to negotiation on prices according to Esayas.
The new regulation also requires Jewelers to mark their product with an identifiable logo to allow the national bank oversee the legitimate chain of gold supply in the country.
In the absence of a company to design and manufacture suitable logos in the country Jewelers have to go to the extra expense of traveling to another country according to Berhane Gebere Kidan, a Jeweler.
Source: Addis Fortune
