What do the "Ethiopia's economists" propose to stop hard currency misdirection & flight from Ethiopia ?
Posted: 22 Jul 2023, 23:56
- Diaspora hard currency has stopped going to Ethiopia with the black market rate around birr 110 per dollar and the official Bank rate around Birr 55 per dollar.( Rough estimate is USD 10 billion per year)
- The black market traders are getting their birr from banks who are illegally funding them or individuals who want to convert birr to dollar (the source of this birr is from sale of assets mainly real estate, corruption and from businesses that generate birr but need dollar to import goods) and deposit/ use it out of Ethiopia .
- Any dollar that is entering to Ethiopia is also exchanged in the black market and the dollar is smuggled out of Ethiopia.
- Currently the Ethiopian Black market both in Ethiopia and out of Ethiopia is controlled by Isaias mafia network & the hub of the illegal trading is Dubai.
As the result the Ethiopian Banks have been facing crippling shortage of dollar & the exchange rate from dollar to birr has been increasing and creating hyper inflation in the domestic market including real estate.
On how to stop the dollar inflow misdirection ( going to Dubai instead of Ethiopia ) from the diaspora and stop inflight of dollars ( out flow ) from Ethiopia is an economic challenge that Ethiopia is facing for the economists to come up with their solutions. I tried to give proposal on this issue long time ago: https://mereja.com/forum/viewtopic.php? ... 4#p1289436
https://www.thereporterethiopia.com/35634/7
- The black market traders are getting their birr from banks who are illegally funding them or individuals who want to convert birr to dollar (the source of this birr is from sale of assets mainly real estate, corruption and from businesses that generate birr but need dollar to import goods) and deposit/ use it out of Ethiopia .
- Any dollar that is entering to Ethiopia is also exchanged in the black market and the dollar is smuggled out of Ethiopia.
- Currently the Ethiopian Black market both in Ethiopia and out of Ethiopia is controlled by Isaias mafia network & the hub of the illegal trading is Dubai.
As the result the Ethiopian Banks have been facing crippling shortage of dollar & the exchange rate from dollar to birr has been increasing and creating hyper inflation in the domestic market including real estate.
On how to stop the dollar inflow misdirection ( going to Dubai instead of Ethiopia ) from the diaspora and stop inflight of dollars ( out flow ) from Ethiopia is an economic challenge that Ethiopia is facing for the economists to come up with their solutions. I tried to give proposal on this issue long time ago: https://mereja.com/forum/viewtopic.php? ... 4#p1289436
https://www.thereporterethiopia.com/35634/7