National bank of Ethiopia adjusts
gold purchase price, again |
Following the liberalization of the country's foreign exchange market, the National Bank of Ethiopia (NBE) announced another modification in its gold purchasing price.
The central bank has
completely removed the incentives it had previously implemented in an effort to
preserve the fast decreasing gold supply.
The NBE currently
offers the birr equivalent of international gold prices at the current exchange
rate, which is computed as an average of rates supplied by commercial banks.
Several years ago, the
central bank imposed a 5% incentive on gold purchases, which was later
increased to 35% and then 65% under Governor Mamo Mihretu's supervision.
Although the NBE is the
only authorized buyer of gold in the country, a flourishing contraband trade
has seen its supply dry up in recent years as artisanal and commercial miners
opt to trade via a significantly more lucrative illicit market.
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