11 February 2026 | Addis Ababa, Ethiopia
Since the July 2024 comprehensive macroeconomic reform, the National Bank of Ethiopia has been removing current account restrictions to ensure the development of the foreign exchange market. To further enhance the market, the Bank has made the following amendments to the foreign exchange regulations.
- Any service exporter is allowed to hold one hundred percent (100%) of its export proceeds in foreign exchange retention account for indefinite periods.
- Authorized banks are allowed to issue internationally recognized cards for all foreign exchange account holders that will be used by the customers to make outbound retail payments including e-commerce as long as the account holders have sufficient FX in their accounts.
- Any foreign exchange account holder, including retention accounts holders, can pay from his/her forex account for his/her spouse’s and children’s education, medical and travel expenses abroad upon presentation of valid documents.
- Profit-making institutions are allowed to open current, savings and time deposit foreign exchange accounts as long as the account holders get foreign currency from abroad in the form of grants/gifts and other foreign exchange sources other than export earnings for which retention account is the right foreign exchange account.
- The minimum requirement, USD 100 to open a foreign exchange savings account for resident and non-resident Ethiopians, including foreign nationals of Ethiopian origin has been removed.
- Outbound investment by Ethiopians has been allowed, subject to case-by-case approval by NBE.
- Without presenting a customs declaration, a person residing in Ethiopia enters into the territory of Ethiopia carrying a foreign currency can convert all foreign currency at an authorized Forex Bureau for the equivalent sum in Birr or deposit to his/her foreign currency account.
- Outbound remittance is allowed for Ethiopians not higher than USD three thousand (USD 3,000) for foreign exchange account holders and non-foreign exchange account holder Ethiopians for their family upon the provision of relevant documents.
- Authorized banks can enter into forward exchange transactions without any approval from the National Bank of Ethiopia.
- Without an approval letter from the National Bank of Ethiopia, foreign direct investment companies, embassies, international organizations including NGOs can open foreign exchange accounts at any authorized bank.
- The approval of external loans (both cash and in kind) and suppliers’ credit are allowed to be fully handled by Authorized banks in accordance with the foreign exchange directive requirements.
- Any exporter is allowed to get advance payment from any party as long as the parties (the sender and Ethiopian exporter) can reach an agreement that specifies, the sender is transferring the foreign exchange for advance payments and the exporter agreed to the terms and conditions, and that terms and conditions are presented to authorized bank.
- In addition, foreign currency receipts can be considered as an advance payment for the future export either (i) marked as “advance payment for future export or import” if the intention is to show the buyer or (ii) state the type of commodity to be exported or the invoice number or the contract number of the transaction, as the case may be, using the funds transferred in advance.
- Authorized banks are allowed to offer private external loan guarantees not exceeding 10 percent of their total capital.
- Authorized banks are allowed to pay foreign exchange not exceeding USD twenty thousand (USD 20,000) or other equivalent currencies, per case for medical and education services as an advance payment without visa and ticket requirements, based on foreign entity’s proof of letter and application of the customer.
- Investors who want to repatriate their dividends are entitled to remit net profit/dividend abroad on condition that the necessary documents in the directive are submitted to banks and commercial banks ensure that all the necessary documents are fulfilled as per the directive without requesting for NBE’s approval.
- To further enhance the working capital of the Independent Foreign Exchange Bureaus, the National bank of Ethiopia releases all Birr 30 million to those Independent Foreign Exchange Bureaus already operational for one year and above, and half of the security deposits (Birr 15 million) for those operational at least for six months.
- The cash holding limit of Independent Foreign Exchange Bureaus has been increased to 25 percent from the current 10 percent of their capital and any excess holding has to be sold to commercial banks.
- Forex bureaus including Independent Foreign Exchange Bureaus are allowed to provide cash foreign exchange sales for local payments such as Visa fees, immigration fees, license fees up on presentation of payment evidence.
For further clarification, please refer to the Bank’s recently revised Foreign Exchange Directive No. FXD/04/2026, available on our website at https://nbe.gov.et/files/fxd-04-2026/
