FOREX price gap with parallel market rate drops to 4 percent in month: NBE Governor

Addis Ababa, September 6, 2024 (FBC) – The foreign exchange market gap with parallel market price has significantly declined from 100 to 4 percent in a single month following the implementation of the macroeconomic reform policy, National Bank of Ethiopia (NBE) Governor Mamo Mihretu said.

In the launching ceremony of a new initiative to promote remittance flow today, Mamo said that various measures including the foreign exchange directive are being implemented to boost the remittance flow.

Accordingly, NBE has launched a digital platform called united to seamlessly boost the remittance flow to the country.

Non-resident Ethiopians, persons of Ethiopian origin, and Ethiopian residents and not-for-profit organizations for receiving funds are eligible to open foreign currency accounts, it was indicated.

The terms, conditions, and interest rates can be negotiated with the banks, Governor Mamo stated. And he underscored that this will majorly improve the flow of remittance to the country.

Moreover, owners of the foreign currency account will have several options for withdrawing funds, it was learned.

Citing the World Bank’s report of 2023, Sub-Saharan Africa received 54 billion USD, the Governor stated, and noted that these encouraging measures will enable Ethiopians leave their footprints in the ongoing development endeavors of the country.

NBE has announced a deposit of 100 billion Birr across 31 banks nationwide, available for the Ethiopian and Ethiopian origin Diaspora community to utilize for various purposes including investment and housing through their foreign currency accounts created via the unite.et app thereby enhancing remittance flow, Governor Mamo elaborated.

North America accounting 29.4 percent is the major source of Ethiopia’s remittance while Arab and Middle East and Europe registering 28.6 and 22.8 percent respectively follow, it was learned.