The National Bank of Ethiopia has urged commercial banks to ensure that the difference between the buying and selling price of foreign currency does not exceed two percent. In a letter sent to commercial banks, the National Bank highlighted the importance of maintaining this limit to ensure transparency and fairness in the foreign exchange market.

With the recent announcement of a new exchange rate system, the National Bank has been closely monitoring the processes in the market. It has emphasized the need for commercial banks to continue announcing their currency buying and selling prices separately on a daily basis. Additionally, banks have been instructed to inform their customers of any commissions charged in separation with the sale of foreign currency.

The National Bank acknowledged previous comments from economists suggesting that banks should align their foreign currency purchase price more closely with their selling price. To address this, the National Bank has introduced a new policy effective immediately, stipulating that the buying and selling price difference should not exceed two percent.

Today, the Commercial Bank of Ethiopia and Oromia Cooperative Bank both adjusted their daily foreign currency trading prices in line with the new guidelines. The selling price of the dollar saw a decrease of eight birr at the Commercial Bank of Ethiopia and eleven birr at the Oromia Cooperative Bank compared to the previous day.

All banks have been notified of the new guidelines and have been instructed to implement the decision by Wednesday to ensure compliance with the National Bank’s regulations.