Remittances have proven to be a viable way to earn foreign currency. Last fiscal year Ethiopia earned USD3.8 billion this way, which is 27Pct more than export earnings. By some estimates, the country could earn nearly USD21 billion from remittances in five years. This can help fund financing gaps that emerge due to poor export performance, decreased bilateral funding as a result of recessions in developed countries, and meagre foreign direct investment (FDI). Experts note that remittances have the added benefit of exposing more people to formal financial systems. To that end, a number of banks are working to improve their services to bring in more foreign currency. Some people, however, feel that the ambitions of the banks and the government may be premature. EBR’s Fasika Tadesse researched the nuances of the issue to gain greater insight into the potential of remittances as a means of financing Ethiopia’s ever-expanding development.