Ethiopia: Private Banks to Inject More Forex Currency Into Market

ADDIS ABABA -Private Banks have announced that they have allocated millions of USD to address the foreign currency shortage and support foreign trade following the nationwide reform.

Recently, Bank of Abyssinia announced that it has provided a loan of more than 3.9 million USD to help ease the foreign currency shortage and support the import sector during the current fiscal year.

In the third quarter of this fiscal year alone, the bank has disbursed over 189 million USD to more than 1,000 customers.

The bank also pledged to promote activities that meet customer needs by effectively managing foreign currency resources and aligning its operations with national economic policy.

In a press release, the bank stated that it plans to strengthen its role in supporting the sustainability of national economic growth by responsibly managing foreign exchange allocations.

Similarly, Awash Bank has allocated 498 million USD to more than 2,200 customers in just the past three months of the current fiscal year. Additionally, the bank has extended over 100 million USD in foreign exchange assistance to various local banks.

To mitigate the shortage of strategic commodities imported into the country since the official ban on Francovaluta, the bank has allocated 50 million USD for edible oil, 79 million USD for fuel, 20 million USD for sugar, and 11 million USD for rice.

Awash Bank also stated that it is allocating foreign currency with priority given to payments for education and medical treatment.

Currently, the National Bank of Ethiopia (NBE) is providing foreign currency to banks through biweekly auctions. As a result, export trade and remittances are showing promising performance, it was noted.