Addis Ababa, Ethiopia — In a bold statement addressing Ethiopia’s parliament on Thursday, Prime Minister Abiy Ahmed accused certain foreign embassies of engaging in illegal black market operations, a practice he claims is draining Ethiopia’s resources and undermining the nation’s economy.
Prime Minister Abiy voiced his concerns to the House of People’s Representatives, alleging that some diplomatic missions are involved in unauthorized foreign currency exchanges that contribute to Ethiopia’s currency shortage. “There are some embassies that are robbing Ethiopia’s resources and doing black market foreign currency business,” Abiy declared. He emphasized that these alleged activities, if proven true, place undue strain on Ethiopia’s already-challenged economy, especially by limiting the availability of foreign exchange.
The Ethiopian economy has faced persistent issues related to foreign currency shortages, which have fueled a black market for currency exchange. On the black market, the Ethiopian birr is often exchanged at rates significantly more favorable than official ones, leading businesses and individuals to turn away from regulated banks and forex bureaus.
Prime Minister Abiy underscored the delicate nature of Ethiopia’s diplomatic relations, noting that the government has refrained from taking drastic action against the embassies thus far in order to preserve its relationships with other nations. However, he warned that patience is wearing thin. “We don’t want to damage our healthy relationships with countries. However, we want relationships that respect the law of the land,” he stated, pledging that Ethiopia will begin stricter monitoring of embassy activities and will not hesitate to act if embassies are found in violation of currency laws.
This high-level scrutiny from the Ethiopian government comes on the heels of recent economic reforms aimed at stabilizing the country’s financial landscape. A key component of these reforms has been the shift toward a market-based exchange rate, a policy intended to bring more competitiveness and transparency to the nation’s currency exchanges. Official banks and registered forex bureaus now operate under these guidelines, but the black market remains a significant competitor, undercutting formal exchange channels and contributing to fluctuations in Ethiopia’s forex stability.
Ethiopian authorities are expected to ramp up efforts to curb illegal exchanges, which are often more attractive due to higher rates compared to those set by official institutions. These reform measures are part of a broader macroeconomic policy designed to tackle longstanding economic challenges, promote transparency, and enhance Ethiopia’s fiscal health.
Observers are watching closely to see how these developments will impact Ethiopia’s international relationships and what steps the government might take to enforce compliance without undermining its diplomatic alliances. For now, Ethiopia appears to be at a crossroads, balancing economic reform efforts with the need to foster and maintain cooperative international ties.
Prime Minister Abiy’s remarks underscore a pressing national concern, highlighting the government’s resolve to protect Ethiopia’s resources, enforce currency regulations, and build a sustainable economic foundation for the future.
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