The head of the National Bank of Ethiopia (NBE) Thursday accused money transmitters in the United Arab Emirates (UAE) of exacerbating black exchange market in the East African nation whose economy is left to deal with the consequences.
Speaking at a relevant meeting, NBE Governor Mamo Mihertu said illegal financial operators mainly based in the UAE are undermining Ethiopia’s economy by expanding parallel currency markets.
“Especially those illegal financial operators in the UAE are fueling the black market and destabilising Ethiopia’s formal foreign exchange system,” Mihertu said.
The government said the illegal transmitters are aggravating the gap between official and black-market exchange rates, contributing to inflation, and macroeconomic instability.
The governor stressed that it is prepared to implement stringent measures—including the freezing or confiscation of illegally transmitted funds to crack down on informal currency trading.
“The bank will soon take strong action against the black market activities allegedly taking place in Dubai,” the Governor noted.
He said the bank would work in collaboration with international financial regulators and partners to track and stop such activities from their source.
The central bank’s warning comes amid ongoing efforts to stabilise the country’s foreign exchange market, which has seen increasing pressure due to limited hard currency reserves and a widening gap between official and black-market rates.
MG/as/APA