National Bank of Ethiopia issues new directives tightening control over local forex market
The National Bank of Ethiopia (NBE) has announced a set of new directives that would guide currency holding limits for both the country’s local currency Birr and foreign currencies such as the US dollar.
A statement by the apex bank, seen by Business Insider Africa, said the directives became necessary to specify the “conditions, limitations, and circumstances under which an Ethiopian, resident of Ethiopia, and a non-resident or any other person may process and utilise foreign currency.”
Do note that these directives took effect on September 5, 2022. See below for the full details.
The directives
According to the new directives, visitors to Ethiopia may not hold more than 3000 Ethiopian Birr as they enter the country. The same applies to anyone leaving Ethiopia for any other country except Djibouti. Travellers from Ethiopia can carry as much as 10 000 Ethiopian Birr to Djibouti.
Foreign residents in Ethiopia who are entering the country from foreign countries must convert all foreign currencies in their possession to an equivalent sum in the Birr, through an authorised forex bureau. Preferably, such individuals must deposit the foreign currencies into their foreign currency accounts within 30 days of entering the country.
Returning foreign residents possessing foreign currencies above $4 000 will be required to present a customs declaration.
The same directive applies to foreign nationals of Ethiopian origin. If they plan to stay in the country for more than 90 days, then they must deposit all foreign currency in their possession into their non-resident foreign accounts.
Foreign visitors with more than $10 000 must present a customs declaration to deposit or convert the foreign currency to the local currency at any authorised forex bureau.
People travelling out of Ethiopia may only be able to carry foreign currency with them if they can present time-stamped bank advice issued for the purchase of said foreign currency.
The directives did not mention modalities for foreign currency remittances and wire transfers.
Further clarifications regarding this might be necessary, especially now that the country is opening its banking sector to foreign players.
