The National Bank of Ethiopia has amended its foreign exchange regulations through a revised Foreign Exchange Directive (FXD/04/2026), continuing the removal of current account restrictions and expanding how foreign exchange accounts can be used. Key changes include allowing service exporters to retain 100% of export proceeds indefinitely, enabling authorized banks to issue internationally recognized cards to foreign exchange account holders for outbound retail payments including e-commerce, and permitting payments from foreign exchange accounts for a spouse’s and children’s education, medical and travel expenses abroad with supporting documents. The amendments also remove the USD 100 minimum to open a foreign exchange savings account for resident and non-resident Ethiopians (including foreign nationals of Ethiopian origin), and allow profit-making institutions to open current, savings and time deposit foreign exchange accounts funded from non-export foreign currency inflows such as grants and gifts. Outbound investment by Ethiopians is permitted subject to case-by-case approval by the National Bank of Ethiopia, while outbound remittances for family purposes are allowed up to USD 3,000 with relevant documents. Additional measures include allowing residents entering Ethiopia with foreign currency to convert or deposit it without presenting a customs declaration; permitting authorized banks to enter forward exchange transactions without National Bank of Ethiopia approval; allowing foreign direct investment companies, embassies and international organizations (including NGOs) to open foreign exchange accounts without an approval letter; and shifting approval of external loans and suppliers’ credit to authorized banks under directive requirements. The directive further sets conditions for export advance payments and their documentation, allows banks to provide private external loan guarantees up to 10% of total capital, permits up to USD 20,000 per case in advance payments for medical and education services without visa and ticket requirements, and allows dividend remittances abroad without National Bank of Ethiopia approval where banks verify required documentation. For independent foreign exchange bureaus, it releases ETB 30 million to those operating for at least one year and ETB 15 million (half the security deposit) to those operating for at least six months, increases their cash holding limit to 25% of capital from 10%, and permits cash foreign exchange sales for specified local payments such as visa, immigration and licence fees upon evidence of payment.
National Bank of Ethiopia 2026-02-11
National Bank of Ethiopia revises foreign exchange directive to allow full retention of service export proceeds and relax outbound FX payments
The National Bank of Ethiopia revised its Foreign Exchange Directive (FXD/04/2026), easing current account restrictions and expanding foreign exchange account usage. Amendments allow service exporters to retain 100% of export proceeds indefinitely, enable banks to issue internationally recognized cards for outbound retail payments, and permit various personal and institutional foreign exchange transactions. Additional measures ease requirements for foreign exchange bureaus, outbound investments, and remittances, shifting certain approvals to authorized banks.