The National Bank of Ethiopia has announced a measure to improve consistency and data integrity in import-related foreign exchange transactions by requiring banks to apply Ethiopian Customs Commission prices for selected imported items as indicative prices when opening Letters of Credit and issuing import permits via other approved modalities. The requirement follows implementation of the consolidated Foreign Exchange Directive No. FXD/01/2024, which moved Ethiopia’s exchange rate system to a market-clearing framework and removed the previous “minimum price” requirement, leaving banks responsible for price verification. The central bank reports having found significant discrepancies between prices used in Letters of Credit issued by most banks and the reference prices applied by the Ethiopian Customs Commission, and frames the change as supporting harmonised price references across the banking system and consistency in balance of payments data. The measure takes effect on January 27, 2026, with the National Bank of Ethiopia indicating it will monitor implementation and take further measures as needed.
National Bank of Ethiopia 2026-01-25
National Bank of Ethiopia requires banks to use Ethiopian Customs Commission reference prices as indicative values for selected imports in foreign exchange processing
The National Bank of Ethiopia mandates banks to use Ethiopian Customs Commission prices for selected imports in Letters of Credit and import permits to enhance data integrity in foreign exchange transactions. This follows the Foreign Exchange Directive No. FXD/01/2024, which shifted Ethiopia's exchange rate system to a market-clearing framework. The central bank aims to harmonize price references and ensure consistency in balance of payments data.