Ethiopian importers criticized for slow utilization of foreign currency --[Reported by Umva mag]

Since the introduction of new macroeconomic reforms in late July 2024, less than one-third of the $282 million in foreign currency allocated by the Commercial Bank of Ethiopia (CBE) to importers has been utilized.

In its statement issued on Monday, the CBE announced that a directive has been implemented since the introduction of new macroeconomic reforms, allowing commercial banks to competitively purchase hard currency from the market.

This new approach, according to CBE, enables banks to respond quickly to foreign currency requests from customers while improving the efficiency of foreign exchange allocation.

“Over the past two months, the CBE has been actively buying foreign currency from the market at competitive rates and providing it to importers to promote import-export activities,” reads the statement.

From 29 July to 1o October, 2024, the bank allocated a total of $284 million to its customers across four rounds but only 28 percent of the fund has been utilized by importers.

Of this amount, $208 million was approved for importing raw materials and consumer goods such as food and medicine, $42 million for machinery purchases, and $18 million for spare parts.

MG/abj/APA

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