Regulatory Procedures for Opening an FX Account in Ethiopia

Opening a foreign exchange (FX) account in Ethiopia is governed by the National Bank of Ethiopia (NBE) and commercial bank policies. This guide covers the regulatory framework, eligibility, documents, and step-by-step procedures for both individuals and businesses.

Regulatory Framework

The NBE's Foreign Exchange Regulations and Directive on Foreign Exchange Accounts set the rules. Key points:

• Authorized dealers: Only commercial banks licensed by the NBE can open FX accounts.
• Account types: Resident and non-resident accounts; current (checking) and savings.
• Currency: Typically USD, EUR, GBP. Some banks offer additional currencies.
• Purpose: Trade, remittances, diaspora savings, export proceeds, or import payments.

Who Can Open an FX Account?

Individuals (Residents)

• Ethiopian nationals residing in Ethiopia
• Foreign nationals with valid residence permits
• Purpose: Receive remittances, hold foreign currency from travel, save in foreign currency

Individuals (Non-Residents / Diaspora)

• Ethiopian diaspora with proof of residence abroad
• Foreign nationals
• Purpose: Send remittances, maintain savings in Ethiopia

Businesses

• Importers and exporters
• Companies with foreign currency receipts or payments
• Purpose: Trade finance, hold export proceeds, pay for imports

Required Documents (Individuals)

1. Valid ID: Ethiopian national ID (Kebele ID) or passport
2. Proof of address: Utility bill, rental agreement, or Kebele residence letter
3. Tax identification number (TIN): Required by most banks
4. Two passport photos
5. For diaspora: Proof of residence abroad (utility bill, bank statement from country of residence), reference letter from a bank abroad
6. Source of funds: For larger deposits, banks may ask for evidence (remittance receipt, employment letter, sale of property)

Required Documents (Businesses)

1. Business registration: Certificate of incorporation or trade license
2. Memorandum and articles of association
3. Tax identification number (TIN)
4. Board resolution authorizing account opening and signatories
5. ID and proof of address for each signatory
6. Import/export license (if applicable)
7. NBE approval for certain account types (e.g., retention accounts for exporters)

Step-by-Step: Opening an FX Account (Individual)

Step 1: Choose a Bank

Compare banks on Birr Value. Consider:

• Minimum balance requirements (often $100–500 or equivalent)
• Monthly fees
• Interest rates (for FX savings)
• Ease of receiving remittances (link to Remitly, Wise, etc.)
• Branch and digital access

Step 2: Visit the Branch or Diaspora Desk

• Residents: Visit any branch with your documents.
• Diaspora: Some banks (CBE, Awash, Abyssinia, Dashen) have dedicated diaspora desks or online onboarding. Check the bank's website.

Step 3: Complete the Application

• Fill out the FX account opening form
• Declare the source of funds and purpose
• Provide beneficiary details if the account will receive remittances

Step 4: Initial Deposit

• Make the minimum deposit in the chosen currency (USD, EUR, or GBP)
• Some banks allow the first deposit to be made via remittance

Step 5: Account Activation

• Receive your account number and SWIFT code (for international transfers)
• Set up internet banking and mobile app if available
• Link the account to remittance providers (see our Send Money page)

Step-by-Step: Opening an FX Account (Business)

Step 1: Obtain NBE Approval (If Required)

• Export retention accounts: Exporters may open accounts to retain a portion of export proceeds. NBE approval and specific limits apply.
• Import accounts: Importers typically open FX accounts for trade payments. Check if your bank requires prior NBE notification.

Step 2: Gather Corporate Documents

• Collect all documents listed in "Required Documents (Business)" above
• Ensure signatories are authorized by the board

Step 3: Apply at Your Bank

• Submit the application to the bank's corporate or trade finance department
• Banks may conduct due diligence on the business and source of funds

Step 4: Compliance and KYC

• Banks will verify the business, beneficial owners, and purpose of the account
• This may take a few days to a few weeks

Step 5: Fund and Activate

• Make the initial deposit
• Receive account details and SWIFT code for international transactions

Limits and Restrictions

• Withdrawal limits: May apply; check with your bank
• Conversion: FX can often be converted to birr at the bank's rate; birr conversion to FX is subject to NBE rules and availability
• Reporting: Large or suspicious transactions may be reported to the NBE or Financial Intelligence Center

Common Issues and Tips

• Rejected applications: Ensure all documents are originals or certified copies; TIN must be valid
• Slow processing: Diaspora accounts may take longer; apply well before you need the account
• Fees: Compare monthly maintenance fees and transaction fees across banks
• Remittance links: Confirm your bank partners with Remitly, Wise, WorldRemit, or others for direct credit to your FX account

Where to Get Help

• National Bank of Ethiopia: nbe.gov.et for regulatory questions
• Your bank: Contact the diaspora desk or corporate department
• Birr Value: Compare bank exchange rates and remittance providers