National Bank Prohibits over 1.5 Mn Birr Cash Keeping Outside of Banks - ENA English
National Bank Prohibits over 1.5 Mn Birr Cash Keeping Outside of Banks
Addis Ababa August 18/2020(ENA) The National Bank of Ethiopia (NBE) issued today a new directive that bans persons and companies from keeping over 1.5 million Birr in cash out of banks.
National Bank of Ethiopia Governor, Yinager Dessie told journalists that the objectives of the directive are to prevent illegal money circulation and strengthen legal transaction as well as protect notes from damage, among others.
According to the Governor, anyone who deposits more than the stated amount of money anywhere out of banks will be accountable and punished as per the regulation.
He also said banks can now borrow money from foreign financial institutions and lend foreign currency to local companies.
This directive is believed to ease the existing foreign exchange shortage in the country, the Governor added.
Moreover, in its effort to encourage digitization NBE has directed banks to use digital marketing technologies, including the use of ATM, consistently and uniformly.
Yinager said micro-finance institutions will be transformed into banks.
Transforming micro-finance institutions into banks and using digital marketing systems are crucial to the progress of the nation.
The Governor stressed that National Bank of Ethiopia is committed to supervise and ensure the implementation of the directives.