Chamber of Commerce Says New Currency Notes Would Strengthen Business

Addis  Ababa, September 17/2020(ENA)The new currency notes would enhance legal business activities in the country and weaken the illegal ones, according to Ethiopian Chamber of Commerce and Sectoral Associations (ECCSA)

Ethiopian Chamber of Commerce and Sectoral Associations Secretary-General, Yesuf Ademnur told ENA that the move taken by the government to demonetize the old notes will  help to control contraband and forgery of notes.

According to him, circulation of birr notes as was the case in Ethiopia disrupts the banking system.

He added that the circulation of money outside banks was also a cause of inflation.

“ I, therefore,  think that the measure taken by the government to change the old birr notes is good,” the secretary general said.

Yesuf urged the business community to abide by the law and help to impose strict control over illegal business activities to strengthen the economy.

The secretary-general also called on the government to give due attention to enhancing  digital financial services by expanding the infrastructures.

Public Policy Professor at Addis Ababa University, Costantinos Berhe said the new birr notes  enable the National Bank to exactly know the amount of money in private hands.

When money kept in private hands comes back to banks, the government will have the  opportunity to scrutinize the money and check its authenticity, he added.

The introduction the new notes will also minimize illicit financial flows, specially associated with contraband trade and illegal activities around the borders.

The professor pointed out that “these illegal activities related to money could again be curtailed to some degree because the money we have abroad could be retained.”  

Furthermore, the introduction of better security features on the new birr notes will help the government to control illegally printed forged notes, Costantinos stated.

Ethiopia issued on Monday new currency notes of birr 10, 50 and 100 denominations, with  additional new 200 birr note.