The National Bank of Ethiopia announced plans to offer gold to the local market in the next few weeks. The bank will sell the gold at current international prices and an additional 0.5% service charge.

Goldsmiths and jewelers will be required to purchase raw gold from the central bank according to a directive issued by the Ministry of Mines. This is expected to curb other sources of gold.

The new directive aims to standardize the local gold market and monitor the source of raw gold being used by goldsmith and jewelers according to Tamrat Mojo, Head of traditional mines, manufacturing and transactions department.

All jewelers in Addis Ababa are expected to re-register with the ministry to receive a certificate allowing them to operate in the market he said. 130 jewelers have been registered so far Tamrat added.

The directive establishes that jewelers can purchase gold from the bank every day at quantities no less than 250 grams. The gold they purchase will have the seal and legal carat imprinted on it.

The bank will keep a record of gold stocks in the possession of jewelers and goldsmiths, who will also be required to notify authorities of their sales according to Tamrat,

The new directive prohibits goldsmiths from retailing gold restricting them to crafting jewelry and supplying it to the jewelries. Jewelers are free from such restrictions.

The National Bank obtains gold from local miners to keep as national reserve or for sale on the international market. The directive establishes the first instance in which the bank sells gold to the local market.

Source: Reporter