Central Bank Set to Limit Cash Withdrawals

Central Bank Set to Limit Cash Withdrawals

(addisfortune)–The National Bank of Ethiopia (NBE) is drafting a circular that will limit the daily and monthly cash withdrawals for individuals and businesses. The circular that is in the making limits an individual’s daily and monthly transactions to 100,000 Br and half a million Birr, respectively, while businesses will be allowed to withdraw a maximum of 200,000 Br a day but not exceeding one million Birr a month.

Yinager Dessie (PhD), governor of the central bank, informed the presidents of commercial banks about the new circular during a meeting held yesterday at the central bank.

The central bank is limiting cash aiming to control cash circulation outside of banks, liquidity management and reducing printing costs, the Governor told bankers.

A few months ago, the Ethiopian Bankers’ Association conducted a study on the liquidity crisis that occurred across the banking sector, where it recommended to limit the withdrawal amount of cash. It proposed half a million Birr maximum daily withdrawal for both businesses and individuals.

Fekadu Geleta