Issued Directive to liberalize its foreign exchange policy
29 Jul 2024
On 29 July 2024, the National Bank of Ethiopia (NBE) issued a new Foreign Exchange Directive No. FXD/01/2024. The Directive permits foreign exchange to be retained by exporters and commercial banks to substantially increase the supply of foreign exchange to the private sector, effectively eliminating the previous surrender requirements to the NBE. The NBE has also simplified the rules for foreign currency accounts, especially those currently held by foreign institutions, and foreign direct investors.
Other measures include the removal of interest rate ceilings that previously applied to private companies or banks when borrowing from abroad, the opening of the Ethiopian securities market to foreign investors under terms and conditions to be specified later, and the reconciliation of various rules on the amount of foreign currency that travellers may carry into or out of Ethiopia.
The Central Bank has also granted special foreign exchange privileges to companies in special economic zones, including the ability to retain 100 per cent of their foreign exchange earnings.
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Type:
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Treatment and operation (Capital transfer and FOREX)
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Promotion and facilitation (Investment facilitation , Special economic zones)
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Industry:
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Services (Financial and insurance activities)
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