Ethiopia's Birr black-market evaporates

The black market for Ethiopian Birr has virtually disappeared due to the sharp decrease in the black market exchange rate of the US dollar to that currency in just two weeks.

Ethiopia is reportedly considering more drastic steps to combat foreign money exchange on the underground market, according to reports this week.Given the numerous individuals involved, the issue seems a little complex. 

Even senior bank employees are involved in the web of illegal money transfer services.Ethiopia stated earlier this week that it had frozen the bank accounts of roughly 392 individuals who were reportedly involved in illicit money transfers from abroad and black market currency transactions.Account holders have a tendency to take money from the Bank up to 80 times each week without conducting any business. The transfer of funds between several account holders is the trend that has been seen.

The National Bank of Ethiopia has implemented a number of regulatory steps in an effort to combat the widespread foreign currency illicit market, which is costing the government a significant amount of money while also escalating inflation.Currently, people and companies each have 100,000 Ethiopian Birr in cash on hand (outside of the bank). As a result, the National Bank has begun offering rewards to people who alert authorized law enforcement to any instances of excess holdings and foreign currency holdings.Once the court determines that the holding is unlawful, the anonymous informants could receive up to 15% of the cash value of the items seized. In addition to foreign exchange, the government is strictly enforcing