NBE Directs Banks to Use Customs Indicative Prices for Import LCs

As reported by Ethiopian Monitor

Summary

• The National Bank of Ethiopia has directed all commercial banks to apply Ethiopian Customs Commission (ECC) prices for selected imported items as indicative prices when opening Letters of Credit (LCs) and issuing import permits through approved modalities, effective January 27, 2026.
• The directive aims to harmonize price references used by the banking system with customs benchmarks and ensure consistency in balance of payments data. The NBE noted that in the course of implementing the market-based foreign exchange regime, prices used in bank-issued LCs have shown significant discrepancies compared to ECC reference prices.
• Ethiopia transitioned to a market-clearing exchange rate framework in July 2024, when the NBE's Foreign Exchange Directive repealed the previous minimum price requirement and placed responsibility on banks to conduct price verification for import transactions.
• For BirrValue users, this change affects importers and businesses that need foreign exchange for trade. The policy tightens import pricing discipline and may influence FX allocation and approval timelines. If you are converting or sending funds for import-related purposes, confirm with your bank whether this affects your transaction and compare total costs (rate + fees) across banks on BirrValue.