Ethiopia’s central bank governor, Mamo Mihretu, declared the nation’s chronic foreign exchange shortage under control on Monday, announcing bi-weekly auctions and a tough stance on illegal remittance networks in a bid to stabilise the market.

Speaking after a meeting with bank CEOs, Mamo revealed reserves have surged 200 percent since the birr’s July 2024 float, hitting fiscal targets three months early.

“There’s been confusion among the public, banks, and businesses—it’s time to set things right,” Mamo said in a press briefing. The NBE will launch auctions on April 1, offering 50 million US dollars, building on prior sales (60 million US dollars in September at 135.62 birr/USD, 75 million US dollars in November at 138.45 birr/USD).

Banks were instructed to keep forex fees “reasonable,” addressing private sector grumbles over access.

“The forex shortage has been curbed,” Mamo said, crediting the float that saw the birr drop from 57.48 to 120 per dollar.

The governor reserved his strongest words for hawala operators, warning of “strong measures” including full suspension for those involved in capital flight or illegal transactions.

With remittances soaring, the NBE aims to clamp down on informal channels that have long siphoned funds, a move reminiscent of a 2022 crackdown that froze 600 accounts.