The latest decision by the National Bank of Ethiopia (NBE) to reduce the surrender requirement from 70/30 to 50/50 percent for local exporters is an encouraging move to boost the sector, leaders of exporters associations said.
Recall that NBE issued recently a directive to improve forex surrender requirement from 70/30 to 50/50 as an incentive for the key export sectors double the percentage of foreign currency that Ethiopian exporters retain from their export earnings.
In an exclusive interview with ENA, Ethiopian Pulses, and Oilseeds Exporters Association (EPOEA) Deputy President Edao Abdi said most of the exporters are owners who engage in industries and need inputs.
Reducing the surrender requirement from 70 percent to 50 percent for local exporters will therefore alleviate problems.
The decision will also help businesses engaged in agricultural export to survive global price fluctuation and fundamentally increase quality and quantity of produces as well as competitiveness.
According to the deputy president, foreign currency is the big part of the country’s economy which requires the role of both the government and private sectors.
Massive support, especially in major export destinations of Ethiopia, is needed from the diplomatic front, he added.
Close assistance of Ethiopian embassies should be strengthened as it is crucial to meet the target of the country in the export sector.
Ethiopian Livestock Exporters Association Board Chairperson, Kibre Mulat said the recent decision of the National Bank of Ethiopia to reduce the surrender requirement will encourage exporters and export trade in general.
Since the exchange rate in the black market and the banks has huge difference, the directive of the Bank will play pivotal roll to narrow the gap, she elaborated.
The chairperson noted that contrabandists have huge advantage to force legal exporters out of the market by using the black market.
Recall that Ministry of Trade and Regional Integration vowed recently to boost export trade by taking appropriate measures against all actors engaged in contraband and illicit trade.
The ministry stated last week that it secured over 3.6 billion USD from export in the concluded Ethiopian budget year.
Source: Ethiopian News Agency