Addis Ababa, Ethiopia – The National Bank of Ethiopia (NBE) has issued a strong warning against unauthorized money transmitters operating from the United Arab Emirates, particularly Dubai, for fueling the black market and destabilizing Ethiopia’s formal foreign exchange system.

In an official statement released this week, NBE Governor Ato Mamo Mehret said the central bank has identified a growing trend of illegal financial operations by overseas entities that are undermining Ethiopia’s economy by expanding parallel currency markets. These underground networks are said to be exacerbating the gap between official and black-market exchange rates, contributing to currency speculation, inflation, and the broader macroeconomic instability.

“Entities based abroad, particularly in Dubai, are deliberately working to distort our financial system by manipulating currency flows outside the formal banking channels,” said Governor Mamo. “We are taking this threat seriously and will continue to act decisively against those involved.”

The NBE emphasized that it is prepared to implement stringent measures—including the freezing or confiscation of illegally transmitted funds—to crack down on informal currency trading. The Bank also stated it would work in coordination with international financial regulators and partners to track and stop such activities at the source.

The central bank’s warning comes amid ongoing efforts to stabilize the country’s foreign exchange market, which has seen increasing pressure due to limited hard currency reserves and a widening gap between official and black-market rates. The illicit flow of money through unregistered channels has become a major challenge for policymakers trying to manage exchange rates and maintain economic discipline.

In addition to targeting illegal actors abroad, the NBE has urged domestic businesses and individuals to cease participation in the informal market and fully utilize the formal banking system for all financial transactions.

“We call on all members of the business community to immediately transition their operations into the formal banking sector. Continued reliance on informal systems poses a serious threat to the country’s economic stability,” the Bank noted.

This crackdown is part of a broader policy initiative by the National Bank to enhance transparency, rebuild foreign currency reserves, and restore confidence in the formal financial sector. Recent reforms—such as the introduction of foreign exchange auctions—are aimed at gradually liberalizing the forex market and reducing reliance on informal currency trading.

Analysts note that unless coordinated international enforcement and local compliance efforts are intensified, illegal remittance and currency trade networks may continue to undercut Ethiopia’s financial recovery efforts.