The National Bank of Ethiopia published a package of foreign exchange (FX) market reforms aimed at increasing flexibility for importers and travellers and bringing bank FX pricing practices closer to global norms, building on recent initiatives such as bi-weekly FX auctions that supply additional foreign exchange to the banking system. Key changes include raising the importer advance payment limit from USD 5,000 to USD 50,000 per import transaction. For travellers, FX cash purchases are increased to USD 10,000 for personal travel and USD 15,000 for business travel, with the allowance available in cash or via a debit card, and holders of foreign exchange accounts may use up to 20 percent of their FX balance via a debit card, up from 10 percent. On fees, banks are instructed to keep FX charges competitive and transparent, with all fees and charges related to purchasing foreign exchange for goods imports, service payments, or cash note purchases capped at 4 percent from May 26, 2025, alongside a direction to avoid supplementary charges for minor associated services. From June 2025, the National Bank of Ethiopia will regularly disclose each bank’s FX-related fees on its website.
National Bank of Ethiopia 2025-05-21
National Bank of Ethiopia raises importer advance and travel FX limits and caps bank FX purchase fees at 4 percent
The National Bank of Ethiopia announced foreign exchange market reforms to enhance flexibility for importers and travellers, aligning bank FX pricing practices with global standards. Key changes include raising the importer advance payment limit to USD 50,000 per transaction and increasing FX cash purchase limits for travellers. Banks must maintain competitive FX charges, capped at 4 percent, with fees disclosed on the National Bank's website from June 2025.