Since the launch of Ethiopia’s foreign exchange bureaus in October 2024, the country has seen a transformative shift in its currency exchange landscape. The shift to a market-based foreign exchange system, coupled with opening of new forex bureaus, is significantly improving access to foreign currency. This transition is helping streamline transactions, reduce reliance on the black market, and foster a more transparent financial environment. As competition among bureaus increases, customers benefit from better rates and more options. Ultimately, this shift is positioning Ethiopia’s financial sector for greater stability and growth.
“Forex bureaus play a vital role as intermediaries in Ethiopia’s floating exchange rate system, offering accessible currency exchange points and formalizing previously informal transactions,” said Mustofa Abdella, Business Consultant.
He added that these institutions enhance market efficiency by providing competitive rates and convenient services for both individuals and small businesses. With their presence in urban centers, they contribute to building a more robust and transparent forex market infrastructure, which is crucial for the smooth operation of a floating rate system. Furthermore, forex bureaus help direct foreign currency through official channels, potentially reducing reliance on the informal market.
No Comment Found.