Addis Ababa, Ethiopia (05 May 2023)
In a move aimed at boosting the supply of gold and increasing foreign currency earnings, the National Bank of Ethiopia has revised the purchase price of gold. The new sliding scale, which will come into effect from May 06, 2023, will see suppliers receiving a higher price for their gold, depending on the amount of gold supplied.
- For gold between 50-150 grams, suppliers will receive a 35% increase on the international price.
- For gold between 150.1-1000 grams, suppliers will receive a 52% increase.
- For gold between 1000.1-5000 grams, suppliers will receive a 55% increase.
- For gold above 5000 grams, suppliers will receive a 60% increase on the international price.
The National Bank of Ethiopia has been buying gold from local suppliers and exporting it abroad for many years, making a significant contribution to the country’s demand for foreign exchange. However, recent illegal gold trading and other problems in the sector have limited the supply of gold being brought to the legal market.
To address this issue, the bank had previously implemented a 35% surcharge on the international price to incentivize suppliers to bring their gold to the legal market. However, it was found that this incentive was not competitive enough, and more needed to be done to encourage suppliers to sell their gold to the bank.
The new sliding scale is expected to encourage more suppliers to bring their gold to the legal market, thereby increasing foreign currency earnings for the country.
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