ADDIS ABABA, ETHIOPIA — May 25, 2026 — In a significant move to streamline international trade and reduce bureaucratic bottlenecks, the National Bank of Ethiopia (NBE) has announced major amendments to its foreign exchange directives. The new measures, effective immediately, eliminate the need for prior central bank approval for key trade finance instruments and mandate a restructuring of fees related to Letters of Credit (LCs).
These changes mark the latest step in Ethiopia’s ongoing transition to a market-based foreign exchange regime, a framework first introduced in July 2024 to align the country’s financial sector with international best practices.
Easing Approval Bottlenecks for Businesses
To improve the ease of doing business and strengthen the broader foreign exchange market, the NBE has amended FX Directive No. FXD/01/2024. The reforms explicitly target institutions holding foreign currency accounts, including retention account holders, granting them unprecedented autonomy in executing international trade transactions.
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