Financial Exchanges Swing in Horn Africa: Outlooks on Banks

Nakfa currency - Credit: DSWphoto

Financial Exchanges Swing in Horn Africa: Outlooks on Banks

By Yosief Abraham Z

While Eritrea has kept the exchange rate of foreign currency stable, North Sudan is still struggling to curb aggravating factors that have been damaging exchanges rates and foreign currency reserves of the country. In opposite direction of Asmara in defeating the dominancy of black-market provocations on exaggerated and inflation-driving characteristics, Khartoum, however, devalued its currency by 34% against US dollar.

With North Sudan’s aggression on black-market and informal remittances is enhancing, South Sudan has also been in debacles of monetary management by its respective banks. In addition to the possibility by North Sudan to absorb its limited foreign exchanges by devaluing its pound to be 30 against 1 dollar, banks from Kenya and Uganda are also in procedural rows with South Sudan following to the amplified international community measurements of scrutiny through decisive sanctions.

By the time Eritrea’s Nakfa is revalued by 64% in the past six months by defeating the black market indexes from 48-50 Nakfa to 16 Nakfa against 1 dollar, Ethiopia is continuing with 27.17 Birr exchange rate for 1 US dollar. Engulfed by in-equilibrium portions in spending the foreign exchange rates between responding basic supplies and insignificant commodities, debating whether to centralize financial procedures of the private banks, has been another challenge ahead of Ethiopia’s financial road.

Comparatively less eyed by international community moves in an effort to punish peace disruptors in South Sudan, Ethiopia’s banks reserve is in the swamps of abrupt changes. Even when Tanzania banks are under the looms of affecting influences by the moves to promote prevalence of peace in South Sudan, the swings of financial ins and outs in Horn Africa are continuing demonstrating various paths to opportunities and challenges.

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Yosief Abraham Z is current Executive Director of HorMid Media and Art Center. For any comments, criticisms and questions, you can contact him at josiabraham29@gmail.com

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