Smart move.

Dangote always come true...like Air Peace

Debts everywhere.

kenny714433:
1 Naira will get to $1k with the way things are going..

Amen

CodeTemplar:
What are they doing with all the oyel forex earning then if they cannot meet forex obligation to investors?

Nigeria earns a lot of Forex from exporting natural gas to Europe but we don't know where all the funds go to

helinues:
Good move.

Naira would soon be accepted in some East African countries

Oga better keep quiet if you don't understand banking and currency operations. The swap move is simply a case of Ethiopia airlines has $100m trapped in Nigeria as sales revenue and Dangote has similar amount trapped in his cement factory in Ethiopia, and so they simply do a currency swap. Ethiopia Airlines gives the Nigerian government the $100m as the CBN will pass it as an entry for dangote and dangote will record it as an FX sales from his Ethiopian cement factory. While Dangote will handover his own to the Ethiopian government who will pass it as Forex sales from Ethiopian airlines. This form of currency swap is done by Banks in the North. If GTB Minna doesn't have cash and they cannot go to CBN for cash and Union Bank Minna has cash, what GTB does is to raise a Manager's cheque for the amount of cash Union Bank Minna would give them and Union Bank Minna Branch supplies the cash to GTB Minna and collects the Manager's cheque which is cashed at CBN by Union Bank later.

Obyangel:
Good news, same way Nnamdi Kanu was swapped. Next swap will be Agbado presido and Piggy wiggly Asari Dokubo

dokubo hold your neck rope 😜

CodeTemplar:
What are they doing with all the oyel forex earning then if they cannot meet forex obligation to investors?

You people are hilarious.......so you do not know that Nigeria under Buhari has already spent the oil money that we are going to earn as far as 2025 into the future, next time check well before you elect olodos like buhari!

Believeintruth:


Oga better keep quiet if you don't understand banking and currency operations. The swap move is simply a case of Ethiopia airlines has $100m trapped in Nigeria as sales revenue and Dangote has similar amount trapped in his cement factory in Ethiopia, and so they simply do a currency swap. Ethiopia Airlines gives the Nigerian government the $100m as the CBN will pass it as an entry for dangote and dangote will record it as an FX sales from his Ethiopian cement factory. While Dangote will handover his own to the Ethiopian government who will pass it as Forex sales from Ethiopian airlines. This form of currency swap is done by Banks in the North. If GTB Minna doesn't have cash and they cannot go to CBN for cash and Union Bank Minna has cash, what GTB does is to raise a Manager's cheque for the amount of cash Union Bank Minna would give them and Union Bank Minna Branch supplies the cash to GTB Minna and collects the Manager's cheque which is cashed at CBN by Union Bank later.

With all this epistle now, isn't this collaboration between a West Africa country and an East Africa country?

Is the partnership/collaboration not going to strengthen the business and friendship of the 2 countries?

helinues:


With all this epistle now, isn't this collaboration between a West Africa country and an East Africa country?

Is the partnership/collaboration not going to strengthen the business and friendship of the 2 countries?

Oga stop being myopic, this is just to help Dangote and Ethiopian airlines retrieve their funds trapped in Ethiopia and Nigeria respectively. There is no politics about it bro. Go and rest and stop this deceit and propaganda.

helinues:


With all this epistle now, isn't this collaboration between a West Africa country and an East Africa country?

Is the partnership/collaboration not going to strengthen the business and friendship of the 2 countries?

It is not helping anything. This is just a quick fix for the problem of trapped funds of these two companies in both countries

Believeintruth:


Oga stop being myopic, this is just to help Dangote and Ethiopian airlines retrieve their funds trapped in Ethiopia and Nigeria respectively. There is no politics about it bro. Go and rest and stop this deceit and propaganda.

Perhaps it's biology

Its time Africans started using African currencies to trade within Africa.

helinues:


Perhaps it's biology

Dude there are serious professionals in this forum. No be everything be propaganda and opportunity for you to tell lies.

helinues:
Good move.

Naira would soon be accepted in some East African countries

Just dey play, you hear dey play.

thesolutions:
The Dollar remains in Nigeria but they are Dangotes. So Dangote and his political partners won't struggle to convert Ethiopian Birr Currency to US Dollar. Federal government has done that for them. After God, na Federal Govenment. True talk.

Read read before you comment

nairalee:
wait o what about the Nigerian Air scam? please they shouldn't sweep it under the carpet like they do most Nigerian corruption cases o

Both the carpet and the broom have been swept away

helinues:
Good move.

Naira would soon be accepted in some East African countries

Wow. This is worse than we thought

tommy589:
Swap deal. But at what naira rate

Good question

helinues:
Good move.

Naira would soon be accepted in some East African countries

Naira did not leave the shores of Nigeria in this transaction.

Dangotes money in Ethiopia was deposited in the Ethiopian Airlines account in Ethiopia while an equivalent amount of Ethiopia Airlines money in Nigeria was deposited into Dangotes account in Nigeria.

helinues:


With all this epistle now, isn't this collaboration between a West Africa country and an East Africa country?

Is the partnership/collaboration not going to strengthen the business and friendship of the 2 countries?

It is simply a cash swap done out of necessity. Nothing is being strengthened or weakened.

Dangote cement operates in Ethiopia. Ethiopian airline operates in Nigeria. What strengthing is there to be strengthened?

Why cant Nigerian and Ethiopian companies carry out trade with their own currencies, why do they need dollar in the first place?

One question have been asking all our Professors of Economics, Econometrics etc.
Why can't Africa have a centralized currency like Europe is using Euro??

The west doesn't want Africa to develop. Why must we transacts in US dollars??

Our elites are failure per excellence

Over 200 million dollars dangote I want to work
With you sir

zolajpower:

Does this make any sense at all ? Can someone enlighten me about the benefits the poor people stand to gain in this whole process?

Your illetracy is over the roof

Always using poverty as gaslight

What concern poor people in businesses trying to repatriate their funds or Nigerian business abroad trying to bring their funds back home

EcoBrick:
https://www.thereporterethiopia.com/35363/

https://www.thereporterethiopia.com/35363/

By Selamawit Mengesha

July 8, 2023

The central banks of Ethiopia and Nigeria have swapped USD 100 million in blocked funds as both countries struggle with severe shortages of hard currency.

The currency deal involves swapping revenues of Ethiopian Airlines from Nigeria and earnings of Dangote Cement in Ethiopia, as the two companies struggled to repatriate profits amid forex shortages in both countries.

The swap arrangement enables Ethiopia to access funds blocked in Nigerian banks, while Nigeria gains access to money held up in Ethiopia.

Ethiopian Airlines is the largest foreign carrier operating in Nigeria, with extensive flight networks spanning major cities like Lagos, Abuja and Kano.

The airline benefits from strong demand from Nigerian travelers going abroad but much of its revenue has been blocked as Nigeria struggles with critical shortages of foreign exchange, making swapping the last resort.

Dangote Cement has been a major player in Ethiopia’s construction sector for over a decade. The company has the capacity to produce 2.5 million tons of cement yearly.

However, as Dangote became unable to repatriate its profits in Ethiopian currency, money began piling up within the country, according to company sources.

With funds stuck in Ethiopia, the central bank finally offered Dangote a currency swap proposal, allowing it to exchange its excess Ethiopian birr for USD held by overseas firms operating in Ethiopia.

Officials say the currency swap allows Ethiopia to access funds blocked in Nigerian banks – including large amounts owed to Ethiopian Airlines – while Nigeria gains access to Ethiopian funds through Dangote Cement, a major Nigerian firm operating in Ethiopia.

Sources at the Central Bank of Ethiopia confirmed it had reached an agreement with its Nigerian counterpart to conduct a “temporary swap of foreign currencies.”

Aviation sources say Ethiopian Airlines exchanged USD 100 million of the USD 180 million in blocked funds in Nigeria for birr from Dangote Cement.

“The National Bank will pay us the equivalent swapped amount in birr,” Ethiopian Airlines CEO Mesfin Tassew told The Reporter, adding there are no plans to swap the remaining amount.

Sources say Dangote still has over USD 200 million unrepatriated from Ethiopia.

Nigeria has faced a critical shortage of foreign currency reserves recently.

The central bank of Nigeria has had to ration dollars to reduce the strain on its reserves, which fell from a peak of USD 62 billion 15 years ago to around USD 36.6 billion in December. This followed a drop in crude production in Africa’s largest oil producer due to rampant theft, vandalism and declining investment.

Ethiopia’s foreign exchange shortage has reached critical levels, making it difficult for the country to import essential goods like pharmaceuticals and industrial inputs. Ethiopia’s forex reserves are insufficient to cover even one month of imports.

The dearth of hard currency has also discouraged much-needed investment in Ethiopia, forcing the National Bank of Ethiopia to introduce reforms aimed at easing the constraints facing investors.

The central bank has now begun providing guarantees allowing investors willing to invest in key sectors through public-private partnerships with the Ethiopian government to repatriate their profits.

This article is kinda gibberish to me. So I asked ChatGPT to break it down for an 8 years old to understand:

Okay, let's break it down for an 8-year-old.

Two countries, Ethiopia and Nigeria, are having a problem with not having enough money from other countries. The central banks of these countries came up with a solution to help each other.

One of the things they did was to exchange money between two big companies in their countries. Ethiopian Airlines, which flies airplanes, was not able to get all the money it earned from Nigeria because Nigeria didn't have enough foreign money. On the other hand, Dangote Cement, a big company in Ethiopia, couldn't get its money out of Ethiopia because of the same problem.

So, the central banks decided to do a swap. They made a deal where Ethiopian Airlines gave some of its money from Nigeria to Dangote Cement, and in return, Dangote Cement gave some of its money from Ethiopia to Ethiopian Airlines.

This way, Ethiopian Airlines could get the money it earned in Nigeria, and Dangote Cement could get its money out of Ethiopia. It's like they helped each other by exchanging their money.

This is important because Ethiopian Airlines is a big airline in Nigeria, and many Nigerians use it to travel. But because Nigeria didn't have enough foreign money, Ethiopian Airlines couldn't get all the money it earned. And Dangote Cement is a big company in Ethiopia, but it couldn't get its money out because of the same problem.

The central banks of both countries made this swap so that Ethiopian Airlines and Dangote Cement could get their money. This helps them continue their businesses and brings more money into both countries.

Now I understand. I just needed to know how the swap happened,which the article didn't specify.

musicwriter:
Great!!

This is the type of news I like to hear coming out of Africa.

There's much more we can do among ourselves as African nations.

Before we head over to be ripped off by white people, let's first check whether one African nation doesn't have a solution.

My applause to whomever came up with the idea.👍👍

good news but black people been ripping each other off since the days of Moses in the bible!

The earlier Africans get their own currency and realise the dollar is a scam the better

Believeintruth:


Oga better keep quiet if you don't understand banking and currency operations. The swap move is simply a case of Ethiopia airlines has $100m trapped in Nigeria as sales revenue and Dangote has similar amount trapped in his cement factory in Ethiopia, and so they simply do a currency swap. Ethiopia Airlines gives the Nigerian government the $100m as the CBN will pass it as an entry for dangote and dangote will record it as an FX sales from his Ethiopian cement factory. While Dangote will handover his own to the Ethiopian government who will pass it as Forex sales from Ethiopian airlines. This form of currency swap is done by Banks in the North. If GTB Minna doesn't have cash and they cannot go to CBN for cash and Union Bank Minna has cash, what GTB does is to raise a Manager's cheque for the amount of cash Union Bank Minna would give them and Union Bank Minna Branch supplies the cash to GTB Minna and collects the Manager's cheque which is cashed at CBN by Union Bank later.

Later saw this explanation. Thanks for breaking it down for those who don't understand, like me.

Some people here already start celebration that it's will favor them

Same way Kenyan swap Nnamdi Kanu with Crude Oil. There must be some kind of arrangement.