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Six Arrested in Japan for Involvement in 2008 Citibank Scam of Bank of Ethiopia

NTDTV

On Thursday, Japanese police arrested six people who were allegedly part of a multi-million dollar scam. $27.2 million was illegally transferred from the National Bank of Ethiopia account at Citibank in 2008.

The arrested suspects were three Nigerians, two Japanese and one from Ghana.

Sources say the six are suspected of money laundering approximately $6.5 million of the funds wired from the $27.2 million scammed from the Citibank account in the United States.

U.S. prosecutors said that in October 2008, the suspects made a total of about 24 wire transfers amounting to almost $27.2 million to various accounts they controlled in Japan, South Korea, Hong Kong, Australia, China, Cyprus and the United States.

Sources say most of the $6.5 million transferred to the Japanese accounts have been withdrawn, although it's not known at this time where the money has gone.

From September through November of last year, the suspects sent fake-signed documents to Citibank appearing to match signatures of officials at the National Bank of Ethiopia.

Ethiopian birr devalued, IMF welcomes move

By Barry Malone

ADDIS ABABA (Reuters) - The Ethiopian birr was devalued by 16.7 percent on Wednesday, according to exchange rates published on the central bank's website, a move welcomed by the International Monetary Fund (IMF).

The birr was quoted by the National Bank of Ethiopia at a weighted average of 16.3514 against the dollar compared with 13.6284 on Tuesday. A central bank official confirmed the new rate but was not authorised to make further comment.

"The IMF welcomes this move given it will help bolster Ethiopia's competitiveness," IMF representative in Ethiopia, Sukhwinder Singh, told Reuters. "It will need to be supported by appropriate monetary policy."

Last month, the government unveiled an ambitious five-year economic plan which targets average annual economic growth of 14.9 percent over the period and aims to end the Horn of Africa nation's dependence on food aid.

Ethiopia is Africa's biggest coffee exporter and the world's fourth largest exporter of sesame. It is also one of Africa's biggest potential markets -- with a population of 80 million -- and most of its people have no telephones or bank accounts.

The devaluation is the Horn of Africa nation's fourth since January 2009. Devaluations can spur economic growth and reduce current account deficits to the extent they boost exports and discourage imports, although they carry the risk of importing inflation.

'DEPRECIATION LIKELY TO CONTINUE'

"I think it's related to the new five-year plan and a strategy of export promotion and import substitution," Tewodros Mekonnen, an economist with local think tank, the Ethiopian Economic Association, told Reuters.

"Obviously there's a risk it could cause inflation. It will probably also boost foreign direct investment and remittances."

Inflation in Ethiopia hit a high of 64.2 percent in July 2008.

After that peak, the government halted state borrowing and increased bank reserves to drive down the rate.

The country's central bank also instructed private banks to restrict borrowing.

The inflation rate slowed to 5.7 percent in July.

"Years of high inflation have eroded the country's export competitiveness, and the government has continually favoured sharp currency depreciations to counteract this," Joseph Lake, an analyst at the Economist Intelligence Unit, told Reuters.

"Though inflation has eased in recent months, this pattern of currency depreciation is likely to continue. Low levels of foreign exchange reserves, and twin fiscal and current-account deficits will continue to put pressure on the currency," Lake said.

The country -- one of the world's biggest recipients of foreign aid -- is keen to attract foreign investment in agriculture and mineral exploration.

Ethiopia has operated a managed floating exchange rate regime since 1992.

Ethiopia's State Owned Commercial Bank secures 2.8 bln birr gross profit

nazret.com - Ethiopia's state-owned Commercial Bank said, it made a 2.8 million profit in the just concluded Fiscal Year, according to Ethiopian News Agency (ENA).

The bank said its annual revenue for the 2009/10 Fiscal Year was 4.9 Billion Birr. The bank said, it has 56.1 Billion Birr in deposit

Commercial Bank of Ethiopia is by far the largest bank in Ethiopia with more than 220 branches across the country. It has recently launched a modernization program including installing ATM at select branches in the capital, Addis Ababa.

Ethiopia - Birr losses momentum against US dollar

PANA

Addis Ababa, Ethiopia - The Ethiopian currency, birr, weakened slightly Thursday after rising strongly against the US dollar and other major currencies on growing coffee export earnings, partly buoyed by additional funds from the International Monetary Fund (IMF).

The Ethiopian birr shed off three basis points Thursday, to trade at 13.51 against the US dollar.

It also weakened against the pound sterling and the euro, as it has traded most recently at 13.45 but yielded more ground at trade at 13.49 earlier in the week.

The local currency traded at 16.59 against the euro, compared to 16.09 early in the week, yielding ground against the pound, to trade at 20.101, compared to the week's opening of 19.45, when it was backed by increased inflows from the IMF.

The IMF has given the Ethiopian economy a vote of confidence and voted for the release of US$58.7 million, to support efforts to keep inflation down.

Ethiopia, which depends mostly on agricultural exports, has seen coffee output growing.

The East African nation produces about 280,000 tonnes of coffee annually.

Tourism earnings, mostly from visitors to some of the country's world- revered religious sites like Axum and Lalibela in the North have also been soaring in recent months.

Bank of Ethiopia opens its 212th branch office in Gilgel Beles town

Source: ENA

Commercial Bank of Ethiopia (CBE) opened its 212th branch office on Saturday at Gilgel Beles town of the Benshangul Gumuz State.

Deputy Chief of the Regional Administration, Sebsibie Nisatie and CBE President, Bekalu Zeleke officially opened the new branch office.

Sebsibie said the opening of the branch office in the area will resolve problems related to financial transactions encountered by individual customers, governmental offices, and non-governmental organizations. He said the branch will also contribute a lot in encouraging the local people develop a culture of saving.

The president said on his part that the branch office will help to boost trade and investment in the area besides curbing problems related to financial transactions. He called up on the local people on the occasion to take advantage of the opportunity and get access to nearby banking services.