cbe

awash

USD
124.024
126.5045
,
EUR
134.4789
137.1685
,
GBP
152.4713
155.5208
,
CHF
134.8392
137.536
,
SAR
29.9183
30.5166
,
AED
30.5582
31.1694
,
CAD
81.1115
82.7337

abyssinia

abay

USD
124.695
127.1889
,
GBP
159.2356
162.4203
,
EUR
131.9772
134.6168
,
AED
33.9454
34.6243
,
ZAR
6.9072
7.0454
,
SAR
33.183
33.8466
,
JPY
0.8283
0.8449
,
CHF
142.281
145.1266
,
AUD
80.8293
81.6299
,
CNY
17.1647
17.508

zemen

CAD
87.5661
89.3174
,
EUR
134.7652
137.4605
,
GBP
157.7083
160.8625
,
SEK
11.3101
11.5363
,
USD
124.0138
126.4941

buna

USD
124.0001
126.4801
,
EUR
131.2601
133.8853
,
GBP
148.3036
151.2697
,
AED
33.3801
34.0477
,
SAR
32.6651
33.3184
,
CAD
71.2526
72.6777
,
AUD
64.239
65.5238
,
JPY
0.6597
0.6729

nib

USD
122.8822
125.3399
,
GBP
156.2195
159.3439
,
EUR
129.486
132.0758
,
CHF
139.3934
142.1813
,
CAD
87.3084
89.0546
,
AED
33.4551
34.1242
,
SAR
32.7036
33.3577

berhan

USD
124.6446
127.1375
,
EUR
135.2251
137.9296
,
GBP
158.5729
161.7443
,
CAD
88.6456
90.4185
,
AED
33.9326
34.6112
,
CNY
17.15
17.493

wegagen

USD
124.7169
127.2112
,
GBP
158.6648
161.8381
,
EUR
131.4017
134.0298
,
CHF
141.7033
144.5374
,
SEK
11.4116
11.6398
,
JPY
0.8356
0.8523
,
CNY
17.1361
17.4788

dgb

USD
122.8476
125.3046
,
EUR
132.8785
135.5361
,
GBP
150.2224
153.2268
,
CHF
130.5811
133.1927
,
SAR
29.8918
30.4896
,
AED
36.6611
37.3943
,
CAD
79.0163
80.5966

enat

USD
124.7634
127.2587
,
GBP
157.0456
160.1865
,
EUR
135.9421
138.6609
,
AED
33.8283
34.5049
,
CAD
88.7716
90.547

ahadu

USD
124.0196
126.5
,
GBP
154.3672
157.4545
,
EUR
130.5387
133.1495
,
CAD
58.8603
61.8033
,
SAR
21.7111
22.7967
,
AED
22.1751
23.2839

addis

EUR
130.6554
133.2685
,
GBP
156.3711
159.4986
,
USD
124.3508
126.8378
,
CHF
140.2716
143.0771
,
JPY
0.8083
0.8244

dashen

USD
124.7171
127.2114
,
EUR
135.2309
137.9355
,
GBP
153.3237
156.3902
,
CAD
81.5647
83.196
,
AED
30.7286
31.3431
,
SAR
30.0855
30.6872
,
CNY
15.634
15.9466

oromia

USD
124.7099
127.2041
,
GBP
159.2545
162.4396
,
EUR
131.993
134.6328
,
CHF
141.0586
143.8797
,
SAR
33.1852
33.8489
,
AED
33.9504
34.6294

lion

USD
124.266
126.7513
,
GBP
153.673
156.7465
,
EUR
132.3433
134.9902

developmentbank

USD
124.1197
126.6021
,
GBP
157.9051
161.0632
,
EUR
130.7725
133.388
,
CHF
140.391
143.1988
,
SEK
11.353
11.58
,
NOK
11.2135
11.4377
,
DKK
17.535
17.8857
,
DJF
0.6952
0.7091
,
JPY
0.825
0.8415
,
CAD
88.2723
90.0378
,
SAR
33.0281
33.6887
,
AED
33.7897
34.4655
,
INR
1.4652
1.4945
,
KES
0.9585
0.9776
,
AUD
79.8214
81.4178
,
SDR
163.0436
166.3045
,
ZAR
6.8712
7.0086
,
CNY
17.0778
17.4194
,
KWD
403.6993
411.7733

coop

EUR
135
137.7
,
AED
32.9933
33.6532
,
SAR
32.2668
32.9121
,
USD
124.7052
127.1993
,
GBP
132.0225
134.6629

gadaa

USD
124.6851
127.1788
,
GBP
148.8061
151.7822
,
EUR
135.9636
138.6829
,
AED
30.607
31.2191
,
SAR
29.9522
30.5512
,
CHF
127.1777
129.7213

hijra

USD
123.4056
125.8737
,
EUR
131.7825
134.4182
,
GBP
152.8358
155.8925
,
SAR
33.0781
33.7396
,
AED
33.8292
34.5058

amhara

USD
124.73
127.2246
,
GBP
157.8708
161.0282
,
EUR
131.191
133.8148
,
CAD
88.858
90.6352
,
AED
33.9595
34.6387
,
SAR
33.1994
33.8633

tsehay

USD
123.4721
125.9415
,
GBP
151.0061
154.0263
,
EUR
129.998
132.598
,
CAD
86.0807
87.8023
,
SAR
32.6661
33.3194
,
AED
33.3811
34.0487
,
AED

tsedey

USD
124.7284
127.223
,
EUR
129.9297
132.5283
,
GBP
153.2834
156.3491
,
AED
33.96
34.6392

siinqee

USD
123.0516
125.5126
,
EUR
135.9799
138.6995
,
GBP
157.5902
160.742
,
SAR
23.1262
23.5887
,
CHF
123.4786
125.9482
,
AED
32.7831
33.4388

hibret

USD
124
126.48
,
EUR
130.6464
133.2593
,
GBP
157.7528
160.9079
,
CHF
140.2556
143.0607

gohbetoch

USD
124.8705
127.3679
,
EUR
129.5533
132.1444
,
GBP
151.1518
154.1748
,
AED
31.0391
31.6599

sidama

USD
123.4356
125.9043
,
GBP
156.4423
159.5711
,
EUR
130.0522
132.6533
,
CHF
139.6213
142.4137
,
KWD
409.5043
401.4747
,
CNY
16.9841
87.7865
,
AED
16.9841
87.7865
,
CAD
33.6073
34.2794

nbe

USD
116.9739
123.6307
,
GBP
156.593
158.1589
,
CHF
138.3488
139.7323
,
SEK
11.5545
11.67
,
NOK
11.2109
11.3231
,
DKK
17.5006
17.6756
,
DJF
0.6551
0.6748
,
INR
1.3989
1.4129
,
KES
0.9033
0.9304
,
JPY
0.8144
0.8226
,
CAD
86.879
87.7478
,
AUD
80.4663
81.271
,
SAR
31.1764
31.4882
,
AED
31.8452
32.1637
,
EUR
130.4844
131.7892
,
XDR
157.9966
159.5766
,
ZAR
6.7497
6.8172
,
CNY
16.6345
16.8009
,
KWD
382.7503
386.5778

binance

USDT
139.34
138.65

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.