Ethiopian Prime Minister Abiy Ahmed has accused some foreign embassies of undermining the country’s economy through black market foreign currency dealings. Addressing the House of People’s Representatives, Abiy alleged that certain embassies have been engaging in unauthorised foreign exchange transactions, negatively impacting Ethiopia’s foreign currency reserves and overall economic stability.
‘There are embassies robbing Ethiopia of resources by running black market foreign currency operations,’ Abiy stated in his speech. He highlighted the adverse impact of these alleged activities on the nation’s foreign currency availability, stressing that Ethiopia has been patient but is now prepared to act to protect its economic sovereignty.
Strained relations and economic impacts
Abiy emphasised Ethiopia’s commitment to maintaining positive diplomatic relationships but warned that this patience has limits. ‘We value our healthy relationships with other nations, but these must respect our country’s laws,’ he said, signalling that the government would monitor embassy activities closely. Should embassies fail to comply, he assured the government would take necessary action to curb any illicit financial practices.
The accusations come as Ethiopia struggles with the effects of black market currency trading, which significantly distorts the official exchange rate and places additional strain on the country’s currency reserves.
Macroeconomic reform and official forex measures
In a bid to stabilise the economy, Ethiopia has introduced sweeping macroeconomic reforms, including a move towards a market-based exchange rate system. Under the new policy, banks and licensed forex bureaus now offer competitive, regulated foreign exchange rates to curb the impact of the black market, which remains prevalent and a destabilising force for Ethiopia’s economy.
The government’s latest measures represent an attempt to shield the nation’s economy from the effects of illicit forex trading, a challenge Abiy insists will be addressed head-on. As he reiterated in his speech, Ethiopia will continue its reform efforts while ensuring foreign entities operating within its borders adhere to local regulations.
Credit: Africabriefing
