cbe

USD
56.9888
58.1286
,
GBP
68.8685
70.2459
,
EUR
61.9126
63.1509
,
CHF
60.2506
61.4556
,
SEK
4.8235
4.92
,
NOK
4.8161
4.9124
,
DKK
7.511
7.6612
,
DJF
,
JPY
0.333
0.3397
,
CAD
37.8309
38.5875
,
SAR
13.7515
14.0265
,
AED
14.0413
14.3221
,
XAF
0.012
0.0122
,
INR
,
KES
,
AUD
34.3952
35.0831
,
SDR
,
ZAR
,
CNY
7.1453
7.2882
,
KWD
177.2055
180.7496

awash

USD
56.9888
58.1286
,
EUR
61.9126
63.1509
,
GBP
68.8685
70.2459
,
CHF
60.2506
61.4556
,
SAR
13.7515
14.0265
,
AED
14.0413
14.3221
,
CAD
37.8309
38.5875

abyssinia

GBP
68.8685
70.2459
,
CHF
60.2506
61.4556
,
EUR
61.9126
63.1509
,
USD
56.9888
58.1286
,
CAD
37.8309
38.5875
,
AED
14.0413
14.3221
,
SAR
13.7515
14.0265
,
NOK
4.8161
4.9124
,
SEK
5.3298
5.4364

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
41.8021
42.6381
,
EUR
61.9126
63.1509
,
GBP
72.1136
73.5559
,
SEK
5.3298
5.4364
,
USD
56.9888
58.1286

buna

nib

GBP
68.8685
70.2459
,
EUR
61.9126
63.1509
,
CHF
60.2506
61.4556
,
USD
56.9888
58.1286
,
CAD
37.8309
38.5875
,
AED
14.0413
14.3221
,
SAR
13.7515
14.0265

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

USD
56.9757
58.1152
,
GBP
71.5102
72.9404
,
EUR
61.511
62.7412
,
CHF
62.7831
64.0388
,
CAD
41.6855
42.5192

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
56.9888
58.1286
,
GBP
68.8685
70.2459
,
CHF
60.2506
61.4556
,
SEK
4.8235
4.92
,
NOK
4.8161
4.91242
,
DKK
7.511
7.6612
,
JPY
0.333
0.3397
,
CAD
37.8309
38.5875
,
SAR
13.7515
14.0265
,
AED
14.0413
14.3221
,
EUR
61.9126
63.1509
,
DJF
0
0
,
INR
0
0
,
KES
0
0
,
AUD
34.3952
35.0831
,
ZAR
0
0
,
CNY
7.1453
7.2882
,
KWD
177.2055
180.7496
,
AED

oromia

USD
56.9888
58.1286
,
GBP
68.8685
70.2459
,
EUR
61.9126
63.1509
,
CHF
60.2506
61.4556
,
SAR
13.7515
14.0265
,
AED
14.0413
14.3221

lion

coop

USD
56.9239
58.0624
,
GBP
71.4053
72.8334
,
EUR
61.0167
62.237
,
SAR
15.1761
15.4796
,
AED
15.4967
15.8066

gadaa

USD
56.9586
58.0978
,
GBP
67.8529
69.21
,
EUR
61.1223
62.3447
,
AED
14.0327
14.3134
,
SAR
137438
14.0187
,
CHF
59.8147
61.011

hijra

amhara

USD
56.9888
58.1286
,
GBP
68.8685
70.2459
,
EUR
61.9126
63.1509
,
CAD
37.8309
38.5875
,
AED
14.0413
14.3221
,
SAR
13.7515
14.0265

tsehay

USD
56.9888
58.1286
,
GBP
68.8685
70.2459
,
EUR
61.9126
63.1509
,
CAD
37.8309
38.5875
,
SAR
13.7515
14.0265
,
AED
14.0413
14.3221

tsedey

USD
56.9837
58.1234
,
EUR
61.6735
62.907
,
GBP
68.612
69.9842
,
AED
14.0396
14.3204

Anticipated Foreign Bank Entry in Ethiopia Authorized 2023

Foreign Bank Entry in Ethiopia

Anticipated Foreign Bank Entry in Ethiopia are Authorized in 2023. Foreign bank entry into Ethiopia, long anticipated by some and feared by others, was legalized this year.

The decision to liberalize the banking sector was made by the Ethiopian Council of Ministers during its 13th regular meeting held on September 03, 2022. This verdict is one item in a string of liberalization the country has been enforcing since the appointment of PM Abiy Ahmed in 2018.

While this novel legislation allows interested foreign investors to engage in banking services in the country, its actual implementation will necessitate the passage of new laws. Many experts speculate that this will take a couple of years, in which time local banks can better ready themselves.

In spite of their capacity and willingness to enter the market, international competitors have been barred from doing so for fear of creating unrivaled competition. It is true, and likely, that foreign banks will have the upper hand due to their superior technology, experience, and capital.

With a combined shareholder number likely does not exceed one million and the protection afforded to them by the country’s policy, the stakeholders of domestic private banks have been earning a return on equity of between 20 to 50% per annum, far more than the 10% global average.

Following the entry of foreign banks, local financial institutions are sure to see a drop in revenue and profit as they lose the closed economy privilege afforded to them on those good old days.

The Current Banks, without the Foreign Bank Entry in Ethiopia

Ethiopia currently has 30 local banks, a significant increase from the 18 that were in operation last year. Even so, H.E Yinager Dessie (Ph.D.), Governor of the National Bank of Ethiopia (NBE), has earlier noted that the banks’ capital fulfillment and strength, rather than their large number, is the pressing issue at hand.

In accordance, NBE has increased its efforts to force mergers and acquisitions on local banks in order to ensure their survival in the face of foreign competition, and provide abundance bank vacancies for employees.

The Current Number of Banks in Ethiopia

Although there are many fears regarding this move, the Council of Ministers put forth several rationales for their decision to let foreign bank entry in Ethiopia local market. Among them are:

  • An Influx of new technology, knowledge, and skills into the sector
  • Provision of adequate financial services and increased foreign exchange inflows
  • Creation of job opportunities for the many unemployed and underemployed youth
  • Increasing the country’s financial sector’s global competitiveness, among other things.

A point that confused many after the legislation was announced was in what particular way foreign banks could invest in Ethiopia. Well, according to the National Bank of Ethiopia, foreign banks can come to Ethiopia in four ways.

Foreign Bank Entry in Ethiopia 4 Ways:

  • Opening a branch (es)
  • Opening a fully owned subsidiary
  • In a joint venture with one of the local banks
  • Lastly, opening commercial representative Office

Prior to this regulation, nine foreign banks have been operating in Ethiopia since 2015, as reported by Business Info Ethiopia.

The movement was initiated by the state-owned Turkish bank Ziraat, which was vying to be the first foreign institution to obtain a banking license in Ethiopia that year.

European Investment Bank, Standard Bank, Deutsche Bank, Commerz Bank, KCB Bank, Bank of Africa, Export-Import Bank of India, and Equity Bank are soon followed in the same footsteps.

Despite Ethiopia’s prohibition on full banking operations by foreign banks, such as direct lending and deposit-taking, the institutes were permitted to maintain a representative office in the country.

According to Afro Tender, this means that banks located in the country could not generate deposits or lend directly to Ethiopian companies and households. However, they could conduct research and credit assessments to allow lending from their respective countries’ headquarters.

While this arrangement has allowed these banks to study the Ethiopian market, the time to use the data they’ve accumulated in nearly a decade has finally come with the liberal policy adopted this year.