Addis Abeba – Prime Minister Abiy Ahmed addressed the House of People’s Representatives today, announcing that adjustments to the Franco Valuta policy will be made soon.
“One of the decisions that did not align with the reforms we have implemented in recent months is regarding the Franco Valuta,” the Prime Minister stated to legislators.
He clarified that the decision to permit imports through Franco Valuta was made for two primary reasons.
“First, to provide an opportunity for foreign currency that had previously left the country to return,” he explained. “Second, the decision allowed imports to continue, even with the potential challenges of increasing prices and putting strain on commercial banks, which are still gaining experience in the economic opening we have initiated.”
Prime Minister Abiy emphasized that the current situation with Franco Valuta is unsustainable and that changes are necessary.
In September 2024, the Ministry of Finance lifted restrictions on Franco Valuta imports, allowing a broader range of goods to enter the country as part of the government’s macroeconomic reforms, which began in late July 2024. AS
