Policy Brief

Growing an Economy: Impact of Foreign Exchange and Remittances on Ethiopian Development

Author : Tom Keatinge
Date : September 2014

Ethiopia has experienced notable economic growth over the last ten years, but its foreign exchange controls appear restrictive in comparison to peer group countries. This brief considers the manner in which foreign exchange control regimes and remittances affect Ethiopia’s economic development and the challenge of imposing appropriate anti–money laundering and countering the financing of terrorism policies without hindering or limiting the important developmental role played by remittance flows. Although this brief focuses on the extent to which these overlapping issues impact Ethiopia, it is important to note that other countries in and beyond the region are also facing these issues as they seek to use such controls to support and protect their economies and currencies.

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