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National Bank of Ethiopia Directives to Authorize Banks to Hold Issue Accounts

NATIONAL BANK OF ETHIOPIA DIRECTIVES TO AUTHORIZE BANKS TO HOLD ISSUE ACCOUNTS

DIRECTIVE NO. 637/2021

Whereas the Bank is responsible for printing, coining, issuing and administering currency in Ethiopia;

Whereas the Bank does not have branch network in the country to supply, collect and closely monitor the availability of currency notes and coins;

Whereas the Bank intends to authorize licensed banks to be its agents for currency distribution and collection;

Now, therefore, pursuant to the authority vested in it by Article 5(1) and 27(2) of the National Bank of Ethiopia Establishment (as amended) Proclamation No. 591/2008, the National Bank of Ethiopia, has hereby issued these directives as follows.

Article 1 Definition

For the purpose of this Directive, unless the context provides otherwise;

  1. The “ National Bank” means the National Bank of Ethiopia;
  1. “Agent” means any licensed bank designated by the Bank as issue account holding bank and authorized to distribute and collect currency notes & coins on behalf of the National Bank of Ethiopia;
    1. “Issue Account” means an account opened and kept by the agent to record the movement of the National Bank of Ethiopia currency.

Article 2 Eligibility

Banks licensed by the National Bank in line with Proclamation Number 592/2008 and interested to provide agency service to the National Bank may open and operate issue account at any of their branches subject to fulfillment of requirements set under article 3 hereunder.

Article 3 Requirements for Agency

Article 4

Rights, Duties and Responsibilities

Rights, duties and responsibilities of the National Bank and its agent shall be determined by agency agreement to be signed between the two parties.

Article 5 Monitoring and Reporting

Article 6 Effective Date

This Directive shall enter into force on the 1st day of November 2011.

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