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](/banks). 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](/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](https://www.nbe.gov.et) for regulatory questions
- **Your bank**: Contact the diaspora desk or corporate department
- **Birr Value**: Compare [bank exchange rates](/banks) and [remittance providers](/send-money)

Regulatory Procedures for Opening an FX Account in Ethiopia

Sending money to Ethiopia from abroad involves choosing a provider, entering transfer details, and selecting how the recipient gets the funds. This step-by-step tutorial walks you through the process and helps you avoid common pitfalls.

## Before You Start

### What You'll Need
- **Sender**: Valid ID (passport or driver's license), bank account or card, recipient's full name and contact details
- **Recipient**: Full name (as on ID), phone number (for mobile wallet), or bank account number and bank name (for bank deposit)
- **Amount**: How much you want to send (in your currency) or how much the recipient should receive (in birr)

### Compare Providers First
Use [Birr Value's Send Money comparison](/send-money) to see:
- **Total cost**: Fees + exchange rate margin
- **Speed**: Minutes (cash/mobile) to 1–3 days (bank transfer)
- **Delivery options**: Bank deposit, cash pickup, TeleBirr, CBE Birr

Top providers often include: **XE**, **Remitly**, **Wise**, **WorldRemit**, **Sendwave**. Rates and fees change daily—compare before each transfer.

---

## Step 1: Create an Account

1. **Go to the provider's website or app** (e.g., Remitly.com, Wise.com)
2. **Sign up** with your email and create a password
3. **Verify your email** and sometimes your phone number
4. **Complete identity verification** (KYC):
   - Upload a photo of your ID (passport or driver's license)
   - Provide your address
   - Some providers require a selfie for verification
   - Approval can take minutes to hours

---

## Step 2: Start a New Transfer

1. **Select "Send money"** or "New transfer"
2. **Choose Ethiopia** as the destination country
3. **Enter the amount**:
   - You can enter the amount you send (e.g., $100 USD) or the amount the recipient gets (e.g., 5,500 birr)
   - The provider will show the exchange rate and any fees

---

## Step 3: Choose Delivery Method

### Option A: Bank Deposit
- **Best for**: Recipients with a bank account; often lower fees for larger amounts
- **Recipient needs**: Account number, bank name (e.g., CBE, Awash, Abyssinia)
- **Speed**: Usually 1–3 business days
- **Tip**: Use the exact bank name as shown on the recipient's passbook or statement

### Option B: Mobile Wallet (TeleBirr or CBE Birr)
- **Best for**: Recipients without a bank account; fast delivery
- **Recipient needs**: Phone number registered with TeleBirr or CBE Birr
- **Speed**: Often minutes to a few hours
- **Tip**: Ensure the recipient has activated their wallet and the phone number is correct

### Option C: Cash Pickup
- **Best for**: Recipients who prefer cash or don't have bank/mobile
- **Recipient needs**: Full name (as on ID), phone number, pickup location (agent or branch)
- **Speed**: Usually same day or next day
- **Tip**: Recipient must bring valid ID to collect

---

## Step 4: Enter Recipient Details

1. **Recipient's full name** (exactly as on their ID)
2. **Phone number** (for mobile wallet or pickup notifications)
3. **For bank deposit**: Account number, bank name, branch (if required)
4. **For cash pickup**: Choose the pickup location (city, agent, or branch)

Double-check all details. Wrong account numbers can send money to the wrong person.

---

## Step 5: Pay for the Transfer

1. **Select payment method**: Bank transfer (ACH), debit card, or credit card
2. **Bank transfer**: Often cheapest; may take 1–2 days to debit your account
3. **Debit card**: Faster; small fee may apply
4. **Credit card**: Usually fastest; higher fees and may count as a cash advance

---

## Step 6: Review and Confirm

1. **Review** the amount, exchange rate, fees, and recipient details
2. **Confirm** the transfer
3. **Save the receipt** or reference number—you can use it to track the transfer

---

## Step 7: Track the Transfer

- Most providers send **email and SMS updates**
- Log in to your account to check status: "Processing," "In transit," "Delivered"
- Bank deposits may take 1–3 days; mobile wallet and cash pickup are often faster

---

## Troubleshooting

### Transfer Delayed or Not Received
- **Check status** in the app or website
- **Contact support** with your reference number
- **Recipient**: Ensure they have the correct phone number/account and have checked their wallet or bank balance
- **Bank deposit**: Sometimes banks need 1–2 extra days; ask the recipient to confirm with their bank

### Wrong Recipient Details
- **Before sending**: Cancel and redo with correct details
- **After sending**: Contact the provider immediately; they may be able to recall or correct in some cases

### Verification Failed
- **Re-upload ID**: Ensure the image is clear and all corners are visible
- **Address mismatch**: Use the address on your bank statement or utility bill
- **Contact support**: Providers can manually review if automated verification fails

### Exchange Rate Worse Than Expected
- **Compare before sending**: Use [Birr Value](/send-money) to see which provider gives the best rate
- **First transfer**: Some providers offer a promotional rate for first-time users
- **Large amounts**: Bank transfer often has better rates than card payments

---

## Tips to Save Money

1. **Compare every time**: Rates and fees change; [Birr Value](/send-money) helps you compare
2. **Use bank transfer**: Usually cheaper than card payments
3. **Larger amounts**: Per-transfer fees often make larger transfers more cost-effective per birr
4. **Promotions**: New customers often get waived fees; check provider websites

---

## Summary Checklist

- [ ] Compare providers on Birr Value
- [ ] Create account and verify ID
- [ ] Enter correct recipient details
- [ ] Choose delivery method (bank, mobile, cash)
- [ ] Review and confirm
- [ ] Save reference number
- [ ] Track until delivered

Step-by-Step Remittance Tutorial: Sending Money to Ethiopia

Ethiopians and diaspora have several ways to grow their money. This guide covers the main options, how they work, and important considerations. **This is educational content only—not financial, investment, or legal advice.** Always consult a qualified professional before making investment decisions.

## Disclaimer

**Birr Value does not provide financial, investment, tax, or legal advice.** The information below is for educational purposes. Investment returns are not guaranteed. Past performance does not indicate future results. You are responsible for your own investment decisions and risks.

---

## 1. Savings Accounts

**What it is**: Deposit money in a bank; earn interest; withdraw when needed.

**Typical returns**: 5–10% per year (varies by bank and NBE policy)

**Risk**: Low. Deposits are with regulated banks.

**Best for**: Emergency funds, short-term savings, liquidity for daily needs.

**Considerations**:
- Compare interest rates across banks (CBE, Awash, Abyssinia, Dashen, etc.)
- Minimum balance requirements (often 100–500 birr)
- Inflation may erode real returns if interest is below inflation

---

## 2. Fixed Deposits (Time Deposits)

**What it is**: Lock funds for a set period (3–12 months or more); earn higher interest than savings.

**Typical returns**: 8–14% per year depending on term and bank

**Risk**: Low. Principal is with regulated banks. Early withdrawal may incur a penalty or lose interest.

**Best for**: Goals with a known timeline (e.g., saving for a car, education, travel in 1–2 years).

**Considerations**:
- Longer terms usually offer higher rates
- Compare rates before locking in; [Birr Value](/banks) lists banks; contact them for current fixed deposit rates
- Inflation: If inflation is high, real returns (after inflation) may be low or negative

---

## 3. Government Bonds

**What it is**: Lend money to the Ethiopian government; receive interest (coupon) and principal at maturity.

**Typical returns**: Varies by bond type and term; often higher than savings.

**Risk**: Low to moderate. Government is the issuer; default risk is generally low but not zero.

**Best for**: Medium- to long-term savings (2–5 years or more).

**Considerations**:
- Sold through banks or the National Bank of Ethiopia
- Liquidity: May be limited; selling before maturity is not always easy
- Check with your bank for availability and terms

---

## 4. Foreign Currency (FX) Accounts

**What it is**: Hold USD, EUR, or GBP in a bank account. Earn interest (if offered) or preserve value in foreign currency.

**Typical returns**: Low interest (if any) or capital preservation if the birr weakens.

**Risk**: Low. Depends on bank and currency. Exchange rate risk depends on your holding currency vs. birr.

**Best for**: Diaspora saving in Ethiopia; importers/exporters; holding foreign currency for future use.

**Considerations**:
- See our [Regulatory Guide to Opening FX Accounts](/knowledge/articles/regulatory-procedures-opening-fx-account-ethiopia)
- Compare banks for minimum balance, fees, and interest
- NBE regulations apply; conversion to birr may be subject to availability

---

## 5. Real Estate

**What it is**: Buy land or property for rental income or capital appreciation.

**Typical returns**: Varies widely; rental yields and capital gains depend on location and market.

**Risk**: Moderate to high. Illiquid; transaction costs; legal and title risks in some cases.

**Best for**: Long-term investors with capital and local knowledge.

**Considerations**:
- Legal due diligence is essential (title, zoning, permits)
- Consult a lawyer and real estate professional
- Liquidity is low; selling may take time

---

## 6. Equities (Stocks)

**What it is**: Buy shares in companies listed on the Ethiopian Securities Exchange (ESX) or similar.

**Typical returns**: Variable; dividends and capital gains.

**Risk**: Moderate to high. Market volatility; company-specific risk.

**Best for**: Long-term investors with risk tolerance and understanding of the market.

**Considerations**:
- ESX is relatively new; liquidity and listed companies are limited
- Requires a brokerage account (check with banks and licensed brokers)
- Research companies and understand the risks

---

## 7. Informal Savings (Idir, Equb)

**What it is**: Community-based savings and lending circles (e.g., Idir, Equb).

**Typical returns**: No interest; social and mutual support.

**Risk**: Low to moderate. Depends on trust and group management; no formal regulation.

**Best for**: Social savings; community support; small-scale savings.

**Considerations**:
- Not regulated; no formal protection
- Choose groups you trust and understand the rules

---

## Building a Strategy for Your Goals

- **Short-term (1–2 years)**: Savings and fixed deposits for liquidity and stability
- **Medium-term (3–5 years)**: Fixed deposits, government bonds, FX accounts
- **Long-term (5+ years)**: Diversified mix (bonds, real estate, equities if appropriate)
- **Diaspora**: FX accounts and remittances; [Send Money](/send-money) for best rates

---

## Key Takeaways

1. **Compare options**: Banks, rates, and terms vary. Use [Birr Value](/banks) to compare banks and [Send Money](/send-money) for remittance rates.
2. **Understand inflation**: Inflation in Ethiopia can be high; consider whether returns are real (after inflation) or nominal.
3. **Diversify**: Don't put all savings in one place. Spread across savings, fixed deposits, and other options based on your goals and risk tolerance.
4. **Seek advice**: Consult a financial advisor, accountant, or lawyer for personalized advice.
5. **Stay informed**: NBE policy and bank rates change. Keep learning.

---

## Learn More

- [Saving and Investing in Ethiopia](/knowledge/articles/saving-and-investing-ethiopia)
- [How to Open a Bank Account](/knowledge/articles/how-to-open-bank-account-ethiopia)
- [Regulatory Procedures for FX Accounts](/knowledge/articles/regulatory-procedures-opening-fx-account-ethiopia)
- [Send Money to Ethiopia](/send-money)

In-Depth Guides