Ethiopia Just Rewrote Its Import Rules: The Franco Valuta Shake-Up Explained

As reported by Ethio Negari

Summary

• The National Bank of Ethiopia introduced a new Import on Franco Valuta Directive, numbered FVD/01/2026, which took effect on May 29, 2026. The directive sets out a comprehensive legal framework for franco valuta imports, meaning goods brought into Ethiopia using foreign currency that comes from sources outside the country's domestic banking system, such as funds held abroad by importers or the diaspora.
• Franco valuta arrangements let importers bring in goods without buying dollars from local banks. By formalizing the rules, the NBE aims to bring more of these flows into a regulated framework, improve transparency, and ease pressure on scarce local foreign currency. The directive is part of the second generation of forex reforms the NBE has rolled out since liberalizing the exchange rate in July 2024.
• For BirrValue users, clearer franco valuta rules can ease some demand for dollars inside the banking system, since certain imports will be financed from outside sources. That can help free up bank foreign currency for remittances and other needs. If you send or receive money, compare rates on [BirrValue](/banks) and review [Send Money](/send-money) options before converting.