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Awash Bank Secures Over $498 Million in Foreign Exchange for Over 2,200 Customers Amid Ethiopia’s Currency Challenges
Addis Ababa, March 27, 2017 (FM C) — Awash Bank has taken a leading role in addressing Ethiopia’s ongoing foreign exchange shortage, securing over $498 million in foreign exchange for its customers during the first quarter of 2017. This comes as the country continues to struggle with a scarcity of foreign currency, which has impacted businesses, essential imports, and the broader economy.
In addition to serving over 2,200 customers with foreign exchange, Awash Bank reported that it also facilitated more than $100 million in foreign exchange transactions for various domestic banks. This step is part of the bank’s larger effort to stabilize the market and ensure that businesses and individuals have access to the required foreign currency.
Despite these efforts, Awash Bank highlighted the challenges posed by the government’s inability to fully meet all short-term foreign exchange needs. Specifically, the government has been unable to provide $50 million for oil imports, $79 million for fuel imports, $20 million for sugar, and $11 million for rice—items critical to Ethiopia’s daily functioning and food security.
The bank has also prioritized foreign exchange allocations to strategic sectors such as education and healthcare, recognizing their critical importance in sustaining the country’s development and public services. By ensuring that these sectors receive their required foreign exchange, the bank is helping mitigate the impacts of the shortage on the population.
Currently, the National Bank of Ethiopia (NBE) is distributing foreign exchange to commercial banks on a 15-day cycle, which has helped alleviate some of the pressure on the market. As a result, Awash Bank has observed improvements in the flow of foreign currency, contributing to greater stability in the foreign exchange market.
The bank has expressed optimism that the foreign exchange supply will continue to increase in the coming months, as both the government and private banks work together to address the shortages. Awash Bank has reassured its customers that it will continue to meet their foreign exchange needs and maintain a steady supply of foreign currency.
In its statement, the bank emphasized that its ongoing foreign exchange efforts are crucial for supporting Ethiopia’s economy, particularly in light of the country’s increasing demand for imports and the need to service foreign debt obligations.
The situation remains challenging, but Awash Bank’s proactive approach aims to play a significant role in stabilizing the foreign exchange market in the short and long term. The bank remains committed to providing essential services to its customers as the economy moves forward.
