Keep Up with Addis Insight
Add us to your Google Preferred Sources to see updates first.
Addis Ababa, Ethiopia – August 8, 2024 – The National Bank of Ethiopia (NBE) has officially commenced the acceptance of applications for Independent Foreign Exchange Bureaus, as per the newly instituted Foreign Exchange Directive (FXD/01/2024) that became effective on July 29, 2024. This marks a significant step towards liberalizing the country’s foreign exchange market.
Under the new directive, Independent Forex Bureaus are now authorized to engage in the buying and selling of foreign currency cash notes, allowing these transactions to be conducted based on freely negotiated exchange rates between the bureaus and their customers. This initiative is open to businesses owned by Ethiopian nationals, Non-Resident Ethiopians, and Foreign Citizens of Ethiopian Origin, who are eligible to apply for a license to operate an Independent FX Bureau.
The directive outlines detailed capital requirements and other operational standards necessary for acquiring an Independent FX Bureau license, all of which are provided in Annex 5 of the Foreign Exchange Directive.
NBE foresees that these Independent FX Bureaus will play a crucial role in deepening the foreign exchange market by catering to customers needing to buy or sell foreign currency cash notes. The initiative is expected to contribute to the ongoing market-driven determination of exchange rates, with operators being permitted to independently set their buying and selling rates for foreign currency cash notes, detached from the bank-posted rates.
NBE Governor Mamo Mihretu highlighted the significance of this move, stating, “With the licensing of Independent FX Bureaus, we are marking yet another important milestone in opening up Ethiopia’s financial sector and aligning it with global norms and best practices.” He emphasized that this development aligns with NBE’s broader strategy to “fundamentally transform the size, shape, and scope of Ethiopia’s financial sector over the coming years.”
For more information and to apply, interested parties can visit the NBE website at nbe.gov.et.
