After 18 Months of Lockdown, Ethiopia Finally Loosens Its Grip on Forex

As reported by The EastAfrican

Summary

• Ethiopia began relaxing some of its foreign exchange controls in May 2026, after about 18 months of tight regulation that followed the July 2024 currency reforms. The shift reflects a much stronger supply of dollars. Foreign exchange reserves reached record highs both at the National Bank of Ethiopia and at commercial banks, helped by a more than 100 percent rise in goods exports, stronger services and remittance inflows, and improved capital inflows from private and official sources.
• The relaxation includes steps such as the bi-weekly FX auctions and the new franco valuta import framework, which together move more foreign currency through formal channels. The reforms aim to keep the market-based exchange rate working smoothly and to reduce the gap between the official and parallel market rates.
• For BirrValue users, easier forex rules and higher reserves generally mean banks have more dollars to sell and fewer restrictions on access. This supports more competitive and stable exchange rates for converting money or receiving remittances. Compare bank rates on [BirrValue](/banks) and review [Send Money](/send-money) before you transfer.