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Ethiopia set to open financial sector for global market

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Addis Ababa, March 28, 2019 (FBC) –The National Bank of Ethiopia (NBE) has announced plans to open the financial sector for the global market.

Governor of the bank, Dr Yinager Dessie, said studies are being conducted in collaboration with World Bank experts to bring significant changes in the financial sector, including opening it for the international market.

Among the studies include establishment of capital market, modernizing payment system, and involving the Diaspora community in the financial sector, he said while presenting the 8th-month performance reports of the bank to the parliament today.

The studies are expected to bring major changes in the finical sector once they are implemented, he told the MPs.

Similarly, the country has secured 1.64 billion US dollars from service and export sectors in the past 8 months, showing a 9.4 % decline compared to the same period the preceding year, according to the Governor.

Dr Yinager attributed the low performance in export to the decrease in supply and fall in the prices of Ethiopia’s major export products, such as gold, live animals, oil seeds, vegetables, and fruits, among others.

He further said the country has earned 3.82 billion US dollars from remittance, while spending 10.5 billion US dollars for imported goods, a 1.3% increase compared to the same period the previous year.

Fuel import took the lion share of the expenditure by consuming a total of 1.73 billion US dollars, according to him.

The hank has currently a foreign currency reserve that is enough to finance 2.6 months of imports. In general, he said, the financial sector is healthier.