Ethiopia Fears U.S. Crisis May Cut Remittances


By Tsegaye Tadesse

Thu 2 Oct 2008, 14:42 GMT

ADDIS ABABA – Instability in U.S. financial markets could cut vital remittances to Ethiopia, now worth $1.2 billion annually, a central bank official said on Thursday.

Millions of Ethiopians impoverished during the regime of Marxist dictator Mengistu Haile Mariam are dependant on money sent by relatives living mainly in the United States.

Elias Loha, manager of Reserve Management and Foreign Exchange Market of Ethiopian National Bank (NBE) said remittances that help families survive, or for investment, are the second largest source of income after exports.

“We are concerned and worried that as a result of the financial crisis … some of the Ethiopians may loose their jobs and as a result they may stop sending money to help their families back home,” Elias said in a Reuters interview. Read More.

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