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NBE Announces Crackdown on Illicit Currency Flows After Major FX Auction

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Governor Mamo Mihertu announced enhanced crackdown on illicit foreign currency flows a day after major FX auction by the National Bank of Ethiopia.

August 6, 2025
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Team Shega

Addis Ababa, Ethiopia

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Ethiopia’s central bank has pledged to intensify its crackdown on illicit foreign currency flows, following a foreign exchange auction that released $150 million to 28 commercial banks.

Mamo Mihretu, Governor of the National Bank of Ethiopia (NBE), said in a statement Wednesday that technology-backed investigations are increasingly enabling authorities to identify institutions and businesses operating outside legal currency channels.

“Measures up to expropriation of the funds could take place,” he warned.

The central bank last week named four U.S.-based money transfer services, Shegey, Adulis, TAAJ Money Transfer, and Ramada Pay (Kaah), for allegedly facilitating unauthorized currency movements. Mamo indicated that more institutions would be released in due course and pointed to a recent uptick in illicit transfers involving operators based in the United Arab Emirates.

“They work to undermine trust in Ethiopia’s financial system and to distort currency rates,” he said.

The governor also pushed back against what he described as misinformation surrounding Ethiopia’s currency reform, launched in July 2024 with the move to float the birr. He maintained that the reform process has progressed steadily over the past year. A day after the float, the Birr slid by around 30% against the dollar and has maintained a steady depreciation since.

According to the NBE’s annual report, foreign exchange inflows rose 33 percent last year to $32 billion, buoyed by stronger coffee and gold exports. Commercial banks, on average, sold $25 million in foreign currency per day to businesses.

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