ADDIS ABABA — In a major regulatory overhaul designed to tighten oversight of foreign currency usage and curb parallel market risks, the National Bank of Ethiopia (NBE) has officially enacted a comprehensive new directive governing Franco Valuta imports.
Titled “Import on Franco Valuta Directive No. FVD/01/2026,” the regulation introduces rigid digital monitoring mechanisms and defines explicit limits on non-banking foreign currency imports. Signed by NBE Governor Dr. Eyob Tekalign, the directive went into immediate effect on May 29, 2026.
Curbing Risks while Maintaining Trade Channels
Franco Valuta arrangements allow importers to fund goods using alternative offshore foreign currency sources without depleting the domestic banking system’s reserves. While acknowledging the mechanism as a vital valve for trade and investment, the central bank noted that a lack of cohesive modern regulation has historically catalyzed deep economic risks.
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