Addis Ababa (Hornpost) Ethiopia’s Financial Security Agency has announced the freezing of bank accounts belonging to 138 individuals suspected of involvement in the illegal foreign currency exchange market, according to state media reports.
This action comes just days after the Governor of the National Bank of Ethiopia, Mamo Mihretu, warned that assets of those trading in the black market would be seized if they did not stop their activities.
In an official press release to local media, the Financial Security Agency stated that it is closely monitoring businesses and individuals operating in the illegal forex market under the guise of legitimate commercial activity.
During a press conference on Wednesday, Governor Mihretu issued a stern warning, saying strong measures would be taken against illegal financial operations, particularly those based in the United Arab Emirates, which he accused of expanding unauthorized forex trading.
He added: “We have been monitoring the situation closely and have taken firm actions in recent days after discovering illegal entities operating out of Dubai that are exploiting the foreign exchange market.”
Last week, the National Bank also named four money transfer companies accused of involvement in money laundering and financing illegal activities. These include:
Shegey Money Transfer, Adulis Money Transfer, Ramada Pay, Taj Money Transfer.
The bank stated that funds sent through these companies are linked to money laundering activities. It also warned that investigations are ongoing, and further appropriate measures will be taken as needed.
The Ethiopian government has been trying to reform the foreign exchange system since last year, aiming to reduce the dominance of the black market. As part of its broader economic reforms and under agreements with the International Monetary Fund (IMF) and World Bank, Ethiopia has devalued its currency and transitioned to a market-driven exchange rate system.
This move marks a shift away from the fixed foreign exchange regime that had been in place for decades.
Hornpost staff Reporter