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The Governor of the National Bank of Ethiopia (NBE), Mamo Mihretu, has sent a strong message to the banking industry: do more to boost foreign exchange inflows.
Speaking at the launch of new money transfer services by Dashen Bank and Commercial Bank of Ethiopia, the Governor said banks are failing to provide convenient digital remittance options for Ethiopians abroad and their families at home.
“The work done by our banks to ensure foreign exchange flows is not satisfactory,” Mamo stressed, urging all banks to adopt secure, digital hawala systems that encourage legal remittances through the financial sector.
Why It Matters
- Ethiopia’s foreign exchange supply remains strained despite growing remittance potential.
- Informal hawala channels dominate, diverting funds outside the legal financial system.
- Digital, tech-enabled solutions could channel billions into Ethiopia’s economy and stabilize currency flows.
Dashen Bank’s New Digital Hawala Services
At a ceremony held at the Sheraton Addis, Dashen Bank, in partnership with Egline System Technologies, introduced three new remittance options:
- Gift Ethiopia – Allows Ethiopians abroad to send money, gift cards, and holiday products directly to relatives.
- Agent-Based Hawala – Licensed agents facilitate easy and legal money transfers across the country.
- Global Digital Platform – Connects multiple international money transfer operators into a single, streamlined system.
Dashen Bank CEO, Asfaw Alemu, said the new services would provide inclusive financial solutions, particularly for Ethiopians working in different parts of the world who want to legally send money home.
The Bigger Picture
- The Governor praised Dashen and CBE for pioneering legal hawala solutions and called on all banks to follow suit.
- He emphasized the need for competitive pricing, secure technology, and transparent services to win the trust of Ethiopians abroad.
- With Ethiopia’s foreign exchange rate showing signs of stabilization, expanding legal remittance options is seen as a crucial step in sustaining the economy’s recovery.
