The Macro Economic Committee which was formed by Prime Minister Abiy Ahmed adopted a number of new economic rules.

Among other duties, the Committee was mainly established to find ways to fetch more foreign exchange to Ethiopia. According to the Premier’s Chief of Staff, Ato Fitsum Arega, the committee improved the interest rate on the controversial 27 percent National Bank of Ethiopia (NBE) bill that private banks are needed to buy every time they disburse a loan. In a meeting chaired by the Premier, the committee increased the interest rate from 3 percent to 5 percent. According to the Chief of Staff, the committee also cancelled the current Diaspora account limit of USD 50,000. As a result, according to Ato Fitsum, the Diaspora can now save an unlimited amount in hard currency.

The NBE bill applied as of April 2011 which substituted the directive limiting banks’ abilities to provide loans, continued to be a controversial directive between the government, financial companies and international financial institutions like the International Monetary Fund (IMF).

Since October 2017, private banks had to sell 30 percent of their foreign exchange at the amount they bought it following the National Bank’s decision. However Ato Fitsum said the 30% will be reduced to a mid rate.

The Committee also enlarged the list of businesses that are allowed to accept payments in foreign currency to include airport telecom services, chartered private airlines, guest houses, specialized clinics & hospitals serving foreign clients.

Source: Capital Ethiopia