The National Bank of Ethiopia is to oversee all foreign currency requests. The bank will manage applications for foreign currency through Letter of Credit or other transfer requests to best allocate limited foreign exchange resources it was said.

The move to take over the management of all foreign exchange by commercial bank is said to follow a recent shortage of hard currency that is inhibiting the flow of import activities. Importers have been forced to wait for extended periods of time for approval of their foreign currency requests leading to allegations of abuse by bank officials according to sources.

The central bank took charge of giving final approval following these charges of mismanagement. It is to be remembered that a similar control was in place during the previous system of government but has not been effect in the last twenty years which so the advent of a private banking sector.

Prime Minister Hailemariam Desalegn recently denied any charges of shortage stating the country had enough reserves to meet the immediate needs of the import sector.

Source: Capital