Eritrea Closes Hundreds of Businesses for Bypassing Banks
Eritrea has temporarily shut down nearly 450 private businesses, the latest in a series of moves that has sent shockwaves through the economy of the Red Sea nation. The closures were a response to companies hoarding cash and “failing to do business through checks and other banking systems,” according to a Dec. 29 editorial published by Eritrea’s Ministry of Information on the state-run website Shabait.com. Most of the affected businesses operate in the hospitality sector, according to the announcement, and they will remain closed for up to eight months, depending on the severity of the violations. About 58,000 private businesses operate across the country, according to the government; less than 1 percent was affected by the recent closures. Replacing the currency The government has taken other steps in recent years…