PROPOSED EXCHANGE CONTROL REGULATION IN ETHIOPIA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R001000570001-1
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 1
• Document Creation Date: November 9, 2016
• Document Release Date: February 5, 1999
• Sequence Number: 1
• Publication Date: November 3, 1947
• Content Type: IR

;cutout contains information affecting
defense of the United States within ' 25X1A2g
"
!= BVW* ~ ,J=W I9g9b)09J0881C DP82-00457R001000570001-
2 ded. emission or the rem
elation of its contents manner to an
nsuthorised person is parohibi
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CENTRAL INTELLI
i
I2383
COUNTRY
Ethiopia
DATE: 25X1A6a
SUBJECT
Proposed Exchange Control
INFO.
3
DIST.
ovem e
e
1917
Regulation in Ethiopia
?
25X1A6a
PAGES
ORIGIN
SUPPLEMENT
1. The Ethiopian Ministry of Finance is attempting to secure the eaactmerit Of a
decree or law requiring the surrender of a portion of U.S. dollars., acquired
through exports of Ethiopian products, to the State Bank of Ethiopia for
Government used
2,. There is opposition to this proposed measure from the Ministry of Commerce
~rxi from the Imperial Palaces: probably as a result of intercession on behalf
. a
of some of the exporters
3,, The proposed regulation would require the surrender of 50% of all American
dollars earned, in exchange for Ethiopian dollars at'the current fixed State
Bank's rate of exchange. Export permits would be required for all shipments
outside the country and would be granted only upon production of purchasers'
documents. Foreign exchange is then to be acquired by the State Bank from
the purchaser.
It,, it is not anticipated that this exchange regulation will ~:=e put into effect
before the first of the year 191?8, but it probably will bty necessary to
effect it shortly thereafter because of the critical dollar position of the
Ethiopian Governument a
5~ One of the desired results will be the' elimination of a group of small
exporters who use their dollars thus earned for speculation on exchange within
Ethiopia.
.The Ministry of Finance has recently purchased $US 200,000 in Saudi Arabia
at a price of shillings 5.85 to 6.o0, and $US 100,000 in Ethiopia for shillings
&15. The present purchase price-for $US in Addis Ababa in small amounts
is around shillings 6.50, but large amounts are hard to find, There is no
law which specifically forbids the sale of foreign exchange in 'thiopia,
so this is an open-market rather than a black-market priced
7. At present over half the exported produce of Ethiopia goes to or through
Aden, and all the dollar exchange thus acquired is lost to Ethiopia.
Comment: The probable result of this regulation, if it is enacted,
aW. the coiifU red rigid enforcement of the Price Control Act, will be a
serious reduction of the foreign trade of Ethiopia.
NOCHANGE
prt
Class.
TIAL in accordance with the
17
Auth: R-et` t /0 8: CIA-RDP82-00457 R001000570001-1
y
Date r A RR
:
document is hereby regraded to
tober 1978 from the
,t.gence to the