25 January 2026 | Addis Ababa, Ethiopia
The National Bank of Ethiopia announces a new measure aimed at strengthening consistency and data integrity in the processing of import-related foreign exchange transactions.
Following the introduction and implementation of the consolidated Foreign Exchange Directive No. FXD/01/2024 in July 2024, Ethiopia’s exchange rate system transitioned to a market-clearing framework, allowing banks to negotiate foreign exchange buying and selling rates with their customers. The directive also repealed the previous “minimum price” requirement, placing responsibility on banks to conduct appropriate price verification when opening Letters of Credit (LCs) and processing other import permits.
In the course of implementation, the National Bank of Ethiopia has observed that prices used in LCs issued by most banks exhibit significant discrepancies when compared with reference prices applied by the Ethiopian Customs Commission.
Accordingly, with the objective of harmonizing price references used by the banking system with those of the Ethiopian Customs Commission, as well as ensuring consistency in balance of payments data, the National Bank of Ethiopia hereby announces that, effective January 27, 2026, all banks shall apply Ethiopian Customs Commission prices for selected imported items as indicative prices when opening Letters of Credit and issuing import permits through other approved modalities.
The National Bank of Ethiopia will continue to monitor implementation and take appropriate measures to support the effective functioning of the foreign exchange market in line with the ongoing reform agenda.
