By Staff Reporter
ADDIS ABABA – (BORKENA) – The banks’ head offices in Addis Ababa are grappling with the issue of transporting cash to and from their regional branches due to the absence of security escorts, according to sources.
Wazema Radio has learned from multiple sources that one of the key reasons for the ongoing cash shortage is the difficulty faced by various banks in Addis Ababa in moving funds from their regional branches.
According to reports, branches in Oromia, Amhara, and Tigray Regions are unable to transfer their collected deposits to the central offices due to the lack of armed security escorts. Several anonymous bank managers have disclosed to Wazema that the branches are not receiving adequate support from security agencies during the money transport process.
Wazema stated that even when cash is transported by air, there is a shortage of security personnel to provide escort services from the bank branch to the airport and from the airport to the destination. Consequently, the regional branches are compelled to retain more money than they should, causing significant concern.
Local banks determine the amount of money to be deposited in their branches after insuring their assets against both man-made and natural disasters, as reported by Wazema. The amount can range from 1.5 to 4 million Birr. However, in certain parts of the country, banks have been compelled to retain larger sums of cash in their vaults for several months.
It has come to our attention that some regional cities have stored 30 to 40 million Birr for an extended period due to the lack of adequate armed security protection for transporting the collected cash to their central offices. Despite inquiries about the absence of security escorts, no satisfactory responses have been provided.
In the meantime, Wazema has noted that the cash shortage in banks in Addis Ababa has not shown any signs of improvement. Withdrawals of tens of thousands of Birr and interbank money transfers continue to be a challenge.
Bank branch managers informed Wazema that, previously, they received 2 to 3 million Birr every two days from their central offices. However, in recent months, they have been receiving no more than 200 thousand Birr. This sum is quickly exhausted by customers, leading to disputes.
Banks in the capital with such problems are resorting to loans from the National Bank of Ethiopia and other banks with healthier cash reserves as a temporary solution, according to Wazema.
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