Ethiopia: Chamber of Commerce Says New Currency Notes Would Strengthen Business

Addis Ababa — The new currency notes would enhance legal business activities in the country and weaken the illegal ones, according to Ethiopian Chamber of Commerce and Sectoral Associations (ECCSA)

Ethiopian Chamber of Commerce and Sectoral Associations Secretary-General, Yesuf Ademnur told ENA that the move taken by the government to demonetize the old notes will help to control contraband and forgery of notes.

According to him, circulation of birr notes as was the case in Ethiopia disrupts the banking system.

He added that the circulation of money outside banks was also a cause of inflation.

" I, therefore, think that the measure taken by the government to change the old birr notes is good," the secretary general said.

Yesuf urged the business community to abide by the law and help to impose strict control over illegal business activities to strengthen the economy.

The secretary-general also called on the government to give due attention to enhancing digital financial services by expanding the infrastructures.

Public Policy Professor at Addis Ababa University, Costantinos Berhe said the new birr notes enable the National Bank to exactly know the amount of money in private hands.

When money kept in private hands comes back to banks, the government will have the opportunity to scrutinize the money and check its authenticity, he added.

The introduction the new notes will also minimize illicit financial flows, specially associated with contraband trade and illegal activities around the borders.

The professor pointed out that "these illegal activities related to money could again be curtailed to some degree because the money we have abroad could be retained."

Furthermore, the introduction of better security features on the new birr notes will help the government to control illegally printed forged notes, Costantinos stated.

Ethiopia issued on Monday new currency notes of birr 10, 50 and 100 denominations, with additional new 200 birr note.

More From: ENA

Don't Miss

AllAfrica publishes around 900 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.