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The National Bank of Ethiopia Introduces New Measures to Reform the Foreign Exchange Market
The National Bank of Ethiopia (NBE) has announced the implementation of several reform measures aimed at improving the country’s foreign exchange market system.
These reforms are intended not only to align Ethiopia’s foreign exchange market with international best practices but also to create a more convenient environment for importers and international travelers.
What Are the Key Reform Measures Introduced Today?
1. Increased Advance Payment Limit for Importers
The maximum advance payment limit for importers has been raised from USD 5,000 to USD 50,000.
This measure is expected to address long-standing constraints on the amount of foreign exchange that importers can advance to their international suppliers.
Citing international benchmarks and the need to modernize outdated practices, the NBE stated:
“Based on the experience of peer countries and the need to update long-standing practices, the advance payment amount permitted for importing goods has been increased from USD 5,000 to USD 50,000.”
2. Increased Foreign Currency Limits for Travelers
To create a more traveler-friendly foreign exchange policy, the NBE has raised the foreign currency limit for Ethiopian citizens traveling abroad.
Under the new policy:
- Private travelers can now carry up to USD 10,000 in foreign currency.
- Business travelers are allowed up to USD 15,000.
These amounts can be withdrawn either in cash or via payment cards. Additionally, individuals with foreign currency bank accounts can now withdraw up to 20% of their balance via cards, up from the previous 10%.
3. Regulation of Bank Charges on Foreign Exchange Services
The NBE has also taken steps to standardize and regulate the administrative fees banks charge for foreign exchange services.
“To bring Ethiopia’s foreign exchange-related administrative fees in line with international norms, banks are urged to prioritize competitiveness, transparency, and customer convenience in their pricing structures,” the Bank stated.
Effective May 18, 2017 (Ethiopian calendar):
- Banks are prohibited from charging more than 4% in administrative fees on foreign exchange-related services such as revenue collection, service charges, and cash transactions.
- Banks must eliminate additional minor service charges to simplify the fee structure and ensure consumer transparency.
To reinforce transparency, the NBE announced that starting June 2017 (Ethiopian calendar), it will begin publishing bank administrative fees related to foreign exchange services on its official website.
You introduced well updated regulatory policy of the NBE rgarding to captal raising.Such as inporters $5k to 50k,busines traveler upto15k amd privet traveler 10k.
Thank u