The swap enables Ethiopia to access funds blocked in Nigerian banks, including large amounts owed to Ethiopian Airlines, while Nigeria gains access to money held up in Ethiopia through Dangote Cement. Ethiopian Airlines reportedly exchanged USD100 million of USD180 million in blocked funds in Nigeria for Ethiopian birr from Dangote Cement. The International Air Transport Association (IATA) has warned that rapidly rising levels of blocked funds threaten airline connectivity in affected markets. The industry’s blocked funds have increased by 47% to USD2.27 billion in April 2023 from USD1.55 billion in April 2022. Next is Bangladesh with USD214.1 million in blocked funds, Algeria with USD196.3 million, Pakistan with USD188.2 million, and Lebanon with USD141.2 million, according to IATA statistics.

Source: Ethiopian News July 12, 2023 15:28 UTC