Despite Ethiopian banks nearly doubling foreign currency allocations compared to last year, businesses continue to face severe U.S. dollar shortages that threaten daily operations and investment plans.
Earlier this week, most commercial banks reported stronger allocations. Awash Bank earmarked $110 million for August, while Dashen Bank disbursed $11 million in the first six days. On August 16, the Commercial Bank of Ethiopia cleared pending applications worth $420.4 million.
Banks insist that individuals, importers, and service providers can access foreign exchange for legitimate business and travel purposes. Overall, monthly disbursements have doubled from a year ago, reaching roughly $500 million, according to the National Bank of Ethiopia (NBE).
Yet businesses say the numbers offer little relief. An auto importer, speaking on condition of anonymity, warned that ongoing scarcity may soon force him to shut down operations. “The lack of hard currency has made the import business extremely tough,” he said.
Some business owners accuse banks of prioritizing profit over practical solutions. “They focus more on marketing than on supporting actual business needs,” the importer added, noting that some bank employees are returning to informal brokerage—earning up to 7 birr per U.S. dollar by linking clients with exporters.
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