Economy
Eritrea Imposes New Limits on Cash Holdings for Individuals and Businesses
BBC · 2 weeks ago · Read the Full Story on BBC
AI SUMMARY
The National Bank of Eritrea has issued a new directive imposing strict limits on the amount of cash individuals and businesses can hold outside the banking system.
- The National Bank of Eritrea introduced a directive mandating that all Nakfa transactions must be conducted exclusively through banks and authorized financial institutions.
- Individuals are prohibited from keeping more than 25,000 Nakfa in cash for longer than 15 days.
- Business entities, categorized into three levels, are permitted to hold cash limits of 50,000, 100,000, and 150,000 Nakfa respectively for a maximum of two weeks.
- Individuals or institutions found exceeding the allowed cash limits or timeframes without a valid reason will face legal action.
- The directive follows a July order requiring all citizens and institutions to deposit their existing Nakfa holdings into banks.
- Existing banking regulations in Eritrea restrict monthly withdrawals to 5,000 Nakfa, requiring local authority permission to exceed this limit for major expenses like weddings.
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