CBE Reassurance Customers of Sufficient Foreign Currency Supply

The Commercial Bank of Ethiopia has announced that it has sufficient reserves of foreign currency, although some private banks still claim they have a shortage.

Officials of the Commercial Bank of Ethiopia told journalists on Wednesday, March 27, 2013, that even if there is a sufficient amount of foreign currency, improper usage has created concerns about a scarcity.

“Most customers file their request in several branches of different banks and that is where the source of the shortage is,” said Mohammed Nuredin, vice president of trade services at Commercial Bank of Ethiopia. “They are asking for more than they want.”

Commercial Bank of Ethiopia has had USD  one billion in its reserves over the last three months, according to officials of the Bank.

The bank has reported that only USD 500 million of total foreign currency have been utilized by customers, and there are no requests from customers that have not been met by the Bank, said Mohammed.

However, some private banks still claim that there is a shortage on their side, and the lag in getting the requested amount of foreign currency from the National Bank of Ethiopia (NBE) is becoming a serious problem.

An official from the National Bank of Ethiopia, however, said that both the private and public banking sectors are supplied with adequate foreign currency.