National bank of Ethiopia adjusts gold purchase price, again

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.