By Horn Africa News
Addis Ababa – Ethiopia’s central bank has called for an investigation into money transfer companies operating in the United States, alleging they pose a threat to the country’s financial stability.
In a statement posted on social media, the National Bank of Ethiopia accused the firms of undermining trust in Ethiopia’s financial system by facilitating the illegal transfer and laundering of money collected from the Ethiopian diaspora in the U.S. The companies reportedly operate in the states of Maryland, Virginia, and Minnesota.
“These companies collect remittances from the Ethiopian community in the U.S. and send them to Ethiopia and other countries,” the statement said. “They are engaged in legitimizing illicit funds and financing unauthorized activities.”
The U.S. dollar remains the most dominant foreign currency flowing into Ethiopia. In recent years, the Ethiopian government has sought to overhaul its foreign exchange system to reduce the influence of the black market.
The International Monetary Fund (IMF) has acknowledged that reforms to the exchange rate regime may help increase Ethiopia’s foreign currency reserves, but also warned that parallel market pressures could rise as a result.
Meanwhile, the central bank has officially filed complaints against the four money transfer companies, naming them as follows:
- Shgey Money Transfer – Silver Spring, MD & Falls Church, VA
- Adulis Money Transfer – Falls Church, VA & Silver Spring, MD
- Ramada Pay (Kaah) – Falls Church, VA
- TAAJ Money Transfer – Minneapolis, MN
The investigation request underscores Ethiopia’s growing concerns about the informal financial flows that could destabilize its economy amid ongoing currency shortages and inflation.
