Economy

National Bank Says It Has Not Decided to Exit Gold Purchasing System

AI SUMMARY

The National Bank of Ethiopia stated that it has not decided to exit the gold purchasing system while keeping its policy interest rate at 16 percent.

The National Bank of Ethiopia announced it has not made a decision to exit the gold purchasing system.
The International Monetary Fund previously recommended that the bank exit the system months ago.
Bank Governor Eyob Tekalign stated in a press conference that the matter is still under study.
Money entering commercial banks through gold purchases has not been widely utilized within the economy according to Eyob.
The National Bank's policy interest rate will remain at 16 percent.
The mandatory reserve requirement for commercial banks to control inflation will remain unchanged.
Double-digit inflation is expected to persist for the next six months.