Getahun Tsegaye
Staff Reporter
Addis Ababa, Ethiopia – The National Bank of Ethiopia (NBE) has stated that the International Monetary Fund (IMF) has not criticized Ethiopia’s foreign exchange reforms, calling information circulating on social media “false.”
NBE Governor Mamo Mihretu firmly stated that the IMF has “never criticized” Ethiopia’s foreign exchange reforms. He made these remarks during a press release on current foreign exchange market developments.
Governor Mamo highlighted that the country’s rapid economic growth, slowing inflation, and increasing foreign currency inflows indicate that Ethiopia is on the “right path to growth.”
He dismissed as “false” the information that the IMF is heavily criticizing Ethiopia’s overall reforms, including foreign exchange reforms. Mamo also rejected claims that foreign currency earnings would decrease starting from the first year of the reforms. He called these rumors “baseless,” adding that the IMF’s view on Ethiopia’s reforms is “very positive” and that the results achieved in all sectors are “beyond expectations.”
The Governor clarified that the World Bank did not raise concerns about the foreign exchange rate of the birr in banks. Instead, the bank’s technical assessment indicated that the exchange rate in banks is properly aligned with economic principles. The assessment also suggested the bird’s exchange rate is undervalued by 4.5%, meaning it should strengthen rather than weaken.
He also noted that 28 banks participated in yesterday’s $150 million foreign currency auction, and all banks received the foreign currency they requested. The average exchange rate was 138 birr per dollar.
According to the Governor, the foreign currency supplied by banks to the business community doubled last year, with all banks now providing $500 million per month. Mamo added that all banks are now informing their customers that they will provide sufficient foreign currency in the coming days, encouraging the business community to take advantage of this opportunity.
Governor Mamo Mihretu further announced that the National Bank will take strong measures, including the confiscation of funds, against importers who use the black market for foreign currency. The Governor issued a warning to both importers and money transfer agents regarding current foreign exchange market activities.
He said that measures would be taken against money transfer agents he claims are deliberately working to “disrupt Ethiopia’s financial system.” He acknowledged that members of the business community have raised many complaints about foreign currency supply from banks and that some merchants turn to the black market because they don’t receive an adequate supply from official channels.
The Governor indicated that most of the business community’s requests are now being met since banks have received a sufficient supply from the National Bank. He urged businesses that have been relying on the black market to return to the formal market.
Mamo strongly advised members of the business community who are not using the banking system to “immediately” return to the formal market. He revealed that the NBE has deployed a strong, technology-backed system to monitor the amount and flow of foreign currency into the black market. Using this system, the bank will take action, “up to confiscating funds,” against importers who use the black market.
The bank also accused money transfer agents based in various foreign countries of “deliberately” undermining the integrity of Ethiopia’s financial system. The NBE stated that it has identified “illegal” activities in Dubai, in the United Arab Emirates, that are expanding the black market.
The bank announced that it will soon take strong action against the black market activities allegedly taking place in Dubai. The Governor noted that this action is part of the bank’s efforts to stabilize the country’s financial system and control the supply of foreign currency.
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Bravo Governor Mamo Mihretu! Go get’em tiger!!! Hey you faceless bigots and connivers! You now have met your master in the field. I hope the overqualified Governor will come up with a list of these broad daylight robbers and take their sorry behind to court here in the USA and wherever they are located. Those of you who knowingly use these thieves to send money, you should be ashamed of yourselves.
Lemindnew koy crypto yalewn birachin accountachin lay algeba yalen
Some of these so-called money transfer and currency exchange outfits are said to be not private. Before we had publishers of books and memories and now it is money laundering. The names they chose are so indicative. They are so experienced in mining our gullible nature that they have been able to take full advantage of our vulnerabilities. We have been taken advantage of since the late 1960’s. But today it is a different story for them. The new sheriff in town is turning the table on their uncomely faces. Patriot H.E. Mamo Mihretu is at their doorstep with his fists so wrapped up to knock them out with one deadly bolo punch. Right on Brother!!!