Ethiopia is looking to secure U.S. support in cracking down on remittance transfers that bypass the formal financial system through black market channels.
On Tuesday, National Bank of Ethiopia Governor Mamo Mihretu met with U.S. Ambassador to Ethiopia Evin Massinga to discuss the issue. According to a statement from the Bank, the talks “focused on efforts being made to improve the investment climate in Ethiopia” and explored ways to “strengthen regulatory cooperation in the area of cross-border remittance flows, so as to ensure such flows are channeled via the formal and regulated financial system.”
Neither the National Bank nor the U.S. embassy disclosed specific outcomes from the meeting.
The move comes less than a week after the National Bank issued a stern warning against black market foreign exchange activities, targeting businesses including those in import and export sectors. The Bank said it would take enforcement measures, including seizing cash from entities involved in illicit forex practices.
Earlier this month, the central bank published a list of authorized money transfer operators for U.S.-Ethiopia remittances while naming four companies — Shgey Money Transfer, Adulis Money Transfer, Ramada Pay (Kaah), and TAAL Money Transfer — as operating illegally.
Ethiopia has been struggling with a persistent gap between official and parallel market exchange rates, which has fueled demand for unregulated remittance channels. Authorities say the clampdown is aimed at protecting the integrity of the financial system and ensuring vital foreign currency inflows reach the formal economy.
