cbe

USD
56.8022
57.9382
,
GBP
67.5744
68.9259
,
EUR
60.4375
61.6463
,
CHF
59.5391
60.7299
,
SEK
4.695
4.7889
,
NOK
4.6818
4.7754
,
DKK
7.3318
7.4784
,
DJF
0.3181
0.3245
,
JPY
0.3324
0.339
,
CAD
37.2237
37.9682
,
SAR
13.7039
13.978
,
AED
13.9956
14.2755
,
XAF
0.012
0.0122
,
INR
,
KES
,
AUD
33.0232
33.6837
,
SDR
,
ZAR
,
CNY
7.1006
7.2426
,
KWD
175.9743
179.4938

awash

EUR
56.5106
57.6408
,
GBP
64.5257
65.8162
,
JPY
0.4037
0.4118
,
CHF
57.4629
58.6122
,
SAR
14.1527
14.4358

abyssinia

GBP
67.5744
68.9259
,
CHF
59.5391
60.7299
,
EUR
60.4375
61.6463
,
USD
56.8022
57.9382
,
CAD
37.2237
37.9682
,
AED
13.9956
14.2755
,
SAR
13.7039
13.978
,
SEK
4.695
4.7889
,
NOK
4.6818
4.7754

abay

USD
56.5376
57.6684
,
EUR
61.7956
63.0315
,
GBP
72.289
73.7348
,
CHF
64.3716
65.659
,
AUD
37.3657
38.113
,
AED
15.3911
15.6989
,
CNY
7.8594
8.0166
,
DKK
8.2877
8.4535
,
DJF
0.3166
0.3229
,
INR
0.6826
0.6963
,
JPY
0.3821
0.3897
,
KES
0.4082
0.4164
,
NOK
5.3785
5.4861
,
SAR
15.0739
15.3754
,
ZAR
3.0306
3.0912
,
SEK
5.5156
5.6259
,
SDR
78.118
79.6804

zemen

CAD
41.1592
41.9824
,
EUR
60.3636
61.5709
,
GBP
70.6939
72.1078
,
SEK
5.1874
5.2911
,
USD
56.7914
57.9272

buna

nib

GBP
67.5744
68.9259
,
EUR
60.4375
61.6463
,
CHF
59.5391
60.7299
,
USD
56.8022
57.9382
,
CAD
37.2237
37.9682
,
AED
13.9956
14.2755
,
SAR
13.7039
13.978

berhan

wegagen

USD
56.704
57.8381
,
GBP
68.416
69.7843
,
EURO
61.4501
62.6791
,
CAD
37.8361
38.5928
,
AUD
33.7923
34.4681
,
CHF
59.9428
61.1417
,
SEK
4.8272
4.9237
,
NOK
4.7926
4.8885
,
DKK
7.4566
7.6057
,
DJF
0.2862
0.324
,
INR
0.6803
0.6939
,
KSH
0.4345
0.4432
,
JPY
0.3389
0.3457
,
SAR
13.6809
13.9545
,
AED
13.9722
14.2516
,
ZAR
3.1723
3.2357
,
CNY
7.0934
7.2353
,
KWD
176.0871
179.6088

dgb

enat

USD
56.8022
57.9382
,
GBP
70.7585
72.1737
,
CHF
62.3446
63.5915
,
SEK
5.1879
5.2917
,
NOK
5.1733
5.2768
,
DKK
8.1014
8.2634
,
KES
0.4271
0.4356
,
JPY
0.3673
0.3746
,
DJF
0.3181
0.3245
,
CAD
41.1312
41.9538
,
AUD
36.4897
37.2195
,
SAR
15.1424
15.4452
,
AED
15.4648
15.7741
,
ZAR
2.9861
3.0458
,
CNY
7.846
8.0029

addis

nbe

dashen

USD
56.8022
57.9382
,
GBP
67.5744
68.9259
,
CHF
59.5391
60.729882
,
SEK
4.695
4.7889
,
NOK
4.6818
4.775436
,
DKK
7.3318
7.478436
,
JPY
0.3324
0.339048
,
CAD
37.2237
37.9682
,
SAR
13.7039
13.977978
,
AED
13.9956
14.275512
,
EUR
60.4375
61.6463
,
DJF
0
0
,
INR
0
0
,
KES
0
0
,
AUD
33.0232
33.6837
,
ZAR
0
0
,
CNY
7.1006
7.2426
,
KWD
175.9743
179.4938
,
AED

oromia

USD
55.4509
56.5599
,
EUR
58.7724
59.9478
,
GBP
64.394
65.6819
,
SAR
13.3775
13.6451
,
CHF
59.3141
60.5004
,
AED
13.662
13.9352

lion

USD
56.7914
57.9272
,
GBP
67.5127
68.863
,
EUR
60.3636
61.5709

coop

USD
56.7329
57.8676
,
GBP
71.9543
73.3934
,
EUR
61.6516
62.8846
,
SAR
15.1247
15.4272
,
AED
15.4472
15.7561

gadaa

USD
56.7914
57.9272
,
GBP
67.5127
68.863
,
EUR
60.3636
61.5709
,
AED
13.9945
14.2744
,
SAR
13.7012
13.9752
,
CHF
59.3909
60.5787

hijra

EUR
61.5525
62.7836
,
USD
56.0843
57.206
,
GBP
71.5355
72.9662
,
AED
15.2681
15.5735
,
CAD
41.9322
42.7708
,
SAR
14.9478
15.2468

Ethiopia Cracks Down on Black Market Forex Exchange as $1

Blackmarket Forex Exchange

Addis Ababa, Ethiopia

The black market for foreign exchange in Ethiopia has been exhibiting a rapidly increasing gap from the official bank exchange rate, passing through the 90-birr mark in early September before reaching the hundreds in October 2022. According to Borkena, $1 was fetching as high as 120 Ethiopian birr, a two-fold jump from the 53- birr banks were selling it for.

The matter was further complicated by the discovery of bank officials’ involvement involved in feeding the black market, along with the other two main culprits: diasporas and illegal Hawala agents. It was found that a single foreign Hawala operator sends forex up to 80 times every week.

In an effort to reverse what has now become a leading cause for the loss of considerable revenue to the government in addition to aggravating inflation, the National Bank of Ethiopia (NBE) has introduced a series of regulatory measures against this illegal market. Although the central bank has launched crackdowns several times prior to this, they had been mostly ineffective.

What’s different this time? Well for one, NBE has introduced several incentive packages for informants who expose black market operators, in a bid to prolong the effectiveness of the measure and make it more appealing to citizens. According to Yinager Dessie, Governor of NBE, informants are rewarded with 25,000-birr per illegal hawala agent they expose and also get 25% of the cash apprehended.

To further hedge against other such activities, the amount of cash holdings outside of the bank is now 100,000-birr for individuals and 200,000-birr for businesses. Anonymous informants of excess holdings could get up to 15% of the seized cash value once the court ruled that the holding is illegal.

Other Black Market Regulations by NBE

NBE has also put in a system that enables it to monitor irregular mobile banking, internet banking, and account transfers between locals and foreigners, as well as the domestic market. With these tools in place, the crackdown began.

On October 7, 2022, NBE revealed that the bank accounts of 391 illegal Hawala transfer providers had been frozen, with preparations underway to open legal suits via the Ministry of Justice. Two days later, on Monday, the Financial Intelligence Center (FIC) announced the number of frozen bank accounts had reached 665.

According to The Reporter Ethiopia, a week after the central bank announced this major clampdown on black market operators, the exchange rate in the parallel market dropped on average from 100-birr to 75-birr. As a result, the spread between the official and market exchange rates reduced from 47 to 29%. This effect was the opposite of the expected outcomes.

While such restrictions would push up the price of dollars in the black market, it seems that the demand has fallen faster than the supply of forex. As per the statement of a former broker in the market, none of the shadow market buyers, who are usually importers, investors, brokers, foreigners, and travelers, are coming to buy forex after the strike because they are afraid.

There is doubt, however, that these measures are permanent. As has previously happened, new black-market operators are bound to turn up, with more sophisticated and smarter operating systems. Many factors have stimulated the parallel market to bulge, and treating the effect rather than the root of the problem may yield only short-term relief.

The major reason driving the black market is the inability to access foreign currency from official sources due to the depleted forex reserve. And the devaluation is not helping matters either.

With regards to the forex shortage, the government has imposed a temporary restriction on importing 38 goods deemed unnecessary and aims to save close to 100 million dollars per year.

Among the major items barred from importation are automobiles, motorcycles, and three-wheelers, whose (already imported) prices might skyrocket as a result. Yinager, when asked by The Reporter, did not comment on the contribution of the ongoing devaluation to the expansion of the black market.