Ethiopian Banks Dangle Up to 10 Birr-per-Dollar Bonuses in New Year FX Race











Addis Ababa — Ethiopia’s banking sector has turned the upcoming Enkutatash holiday into a high-stakes currency competition, with banks rolling out headline-grabbing promotions — some offering fixed Birr bonuses per dollar, others floating percentage uplifts — to capture diaspora remittances and festive FX flows.

The Context: Why Enkutatash Triggers an FX Bidding War

Seasonal spike in inflows: Ethiopia’s New Year (Sept 11) is a peak remittance season as families send gifts home.

Policy shift: The National Bank of Ethiopia’s gradual liberalization and larger FX auctions have emboldened banks to compete more openly.

Diaspora target: With an estimated USD 5–6 billion in remittances annually, banks see festive promos as a way to divert flows away from informal hawala channels into the formal system.

The Offers: Bank-by-Bank Breakdown

Here’s how banks are competing, based on their published campaigns:

What it means in practice:

If the daily board rate is ETB 142 per USD:



At Amhara Bank, customers would effectively get ETB 149 (142 + 7) per USD.







At Abyssinia Bank, they’d walk away with ETB 152 (142 + 10) per USD — a nearly 7% uplift compared to the market average.







At Zemen Bank, the 6% bonus would translate into ~150.5 ETB per USD.

At Amhara Bank, customers would effectively get ETB 149 (142 + 7) per USD.

At Abyssinia Bank, they’d walk away with ETB 152 (142 + 10) per USD — a nearly 7% uplift compared to the market average.

At Zemen Bank, the 6% bonus would translate into ~150.5 ETB per USD.

Why Banks Can Afford This

FX auctions supplying liquidity: NBE’s recent USD 150m auction gives banks more hard currency to sell on.

Regulatory blessing: Campaigns dovetail with the central bank’s DEBO initiative, urging diaspora to use formal channels.

Competitive signaling: Banks want to signal strength ahead of looming foreign entrants (after the 2024 open banking law).

The Risks

Margin squeeze: Offering ETB 10 extra per dollar significantly eats into banks’ spread revenue; promos are unlikely to last beyond September.

Selective eligibility: Bonuses often apply only to transfers via specific apps or corridors. Customers may face caps.

Parallel market response: If informal operators counter with even higher rates, banks may struggle to hold ground.

Outlook: A New Normal in Ethiopian FX

This holiday season is more than a marketing stunt. The fact that mainstream banks are advertising +10 Birr per USD or 6% uplifts suggests Ethiopia’s FX landscape is entering a more competitive, transparent era.

If banks continue to innovate — blending digital rails, aggressive promos, and transparent pricing — remittances that once slipped into the informal market could increasingly flow into formal banking channels, strengthening Ethiopia’s external accounts.

For diaspora senders, this year’s Enkutatash presents a rare opportunity: formal channels that not only match but in some cases outperform the street rate.