ADDIS ABABA – The National Bank of Ethiopia (NBE) has put a limit on the amount of cash that individuals can keep at home, its governor said on Tuesday.
During a press conference at his office, the governor of the central bank, Yinager Dessie (Ph.D.) said a new directive has been introduced that input the cash holding limit at home or in lockers.
It forbids a cap on cash holding of more than 1.5 million birr, the governor said.
The move is aimed at minimizing the amount of foreign currencies that the country spends to print paper money and controlling illegal activities, he said.
“If anyone is found keeping or carrying more than the stated amount of cash, he/she will face punishment,” Yinager was quoted as saying by FBC.
The new directive came into effect as of August 19, 2020.
In May, the central bank put a cap on cash withdrawals for individuals and companies from commercial banks and microfinance institutions.
The Bank issued the directive – which came into effect as of May 19 – in a bid to curtail illegal transaction, combat tax evasion, and money laundering in the market system.