Expert urges gov’t to implement research based foreign currency exchange regime
Seife Desta, National Bank of Ethiopia (NBE) former Banking and Foreign Currency Directorate Director urged the government on Friday to implement a research-based foreign currency exchange rate regime, which will be executed by considering the situation on the ground.
Currently, Ethiopia is implementing a managed floating foreign currency exchange system.
“The government should follow a pragmatic, research based and gradual path regarding the foreign exchange rate regime,” Seife said on a business forum organized by Addis Abeba Chamber of Commerce & Sectoral Associations which was focused on “Exchange Rate Liberalization Lessons of Best Practices”.
He recalled that the NBE’s directive which has given priority to allocate foreign currency for commodities to be imported is the result shortage of currencies.