Addis Ababa, August 2, 2017 (FMC) – In a significant crackdown on the illegal foreign exchange market, Ethiopia’s Financial Security Service (FSS) has announced the freezing of bank accounts belonging to 138 individuals suspected of operating outside the legal financial system.

The suspects are alleged to be central players in the country’s black market foreign exchange network, which has long been a source of economic instability and regulatory concern. According to the FSS, these individuals were conducting large-scale currency transactions that bypassed Ethiopia’s formal banking system, undermining efforts to stabilize the foreign exchange market and enforce monetary policy.

In an official statement, the FSS stressed that foreign currency transactions must be conducted exclusively through licensed financial institutions, in line with national financial regulations. The use of informal or parallel markets not only violates these laws but also exposes the economy to serious risks, including inflationary pressure, capital flight, and the weakening of the Ethiopian birr.

The agency emphasized that those who engage in illegal foreign exchange trading will face strict legal consequences, including the confiscation of assets and long-term imprisonment. The government has repeatedly warned individuals and businesses to avoid unauthorized currency dealings and to utilize formal banking channels for all foreign exchange services.

Despite these warnings, the FSS revealed that it has been closely monitoring a number of individuals and entities suspected of treating illegal forex trade as a routine commercial operation. After gathering sufficient evidence, the Service moved to freeze the bank accounts of the 138 principal suspects, effectively cutting off their access to financial resources and halting their operations.

The crackdown is part of a broader national effort to disrupt the informal forex market, which has grown in recent years amid currency shortages and regulatory gaps. The FSS stated that additional investigations are ongoing and further enforcement actions will follow.

Authorities reiterated their call to the business community and the wider public to refrain from engaging in illicit financial activities, reaffirming the government’s commitment to financial transparency, rule of law, and the long-term health of the national economy.