The government of Ethiopia has cancelled Franco Valuta. Franco Valuta was allowed by the Ethiopian government over 2 months ago.
Under Franco Valuta, importers can bypass conventional banking channels, use their foreign accounts to import items allowed under the policy. It is generally introduced when there is shortage of foreign currency in the country.
In a letter written today to the Ethiopian National Bank and the Customs Commission, the Ministry of Finance banned Franco Valuta starting from today. Last week, the Ethiopian Prime Minister, said that Franco Valuta was not compatible with the new macro economic reforms introduced in July this year.
Those importers, who have ordered goods from abroad till today through Franco Valuta, will submit the legal documents of purchase to the Customs Commission within 2 weeks from today so that the ordered goods could be allowed to enter the country.
Ethiopian PM Accuses Embassies of Running Black Market
Ethiopia: ESX Hopes to List Over 90 Businesses on its Boards