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National Bank of Ethiopia Opens Foreign Exchange Market to Private Businesses

The National Bank of Ethiopia (NBE) has officially completed the process to permit non-bank private entities to open foreign exchange offices, marking a significant shift in the country's foreign exchange regulations. This move aims to formalize and expand participation in Ethiopia's foreign exchange market beyond traditional banking institutions.

In a recent announcement, the NBE revealed that it is now open to accepting applications from private businesses and organizations interested in engaging in foreign exchange activities. This new policy comes as a response to the growing demand for legal channels for foreign currency transactions and aims to integrate previously informal operators into the regulated market.

Ato Ababayehu Dhufera, Deputy Director of Foreign Exchange Monitoring and Reserve Management at the NBE, stated, "We have begun accepting applications from entities interested in opening foreign exchange offices. This step is part of our effort to regulate and expand the foreign exchange sector."

Under the new regulations, foreign citizens residing in Ethiopia are now permitted to hold foreign exchange accounts. They will only need to open a local Birr account if they wish to convert their foreign currency into Ethiopian Birr. The minimum requirement for opening a foreign exchange account is set at 100 USD.

Ababayehu Dhufera emphasized that this regulatory change not only benefits individuals by providing more accessible foreign exchange services but also contributes positively to the national economy. "Any individual who earns foreign currency in the country can now open a foreign currency account with a minimum deposit of 100 dollars. This development is expected to support both personal and economic growth," he added.

To ensure the stability and integrity of the new entrants in the foreign exchange market, the NBE has established specific entry requirements. Private businesses interested in setting up foreign exchange offices must meet a minimum capital requirement of 15 million ETB and deposit 30 million ETB in a blocked account at any bank.

This initiative by the National Bank of Ethiopia represents a major step towards modernizing the country's foreign exchange landscape, offering more opportunities for participation, and strengthening the financial system.

For further information or to apply for a foreign exchange office license, interested parties are encouraged to contact the National Bank of Ethiopia directly.

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National Bank of Ethiopia Opens Foreign Exchange Market to Private Businesses

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