NBE Amends FX Directive: Service Exporters Can Retain 100% of Proceeds, Lifts Multiple Restrictions

As reported by The Reporter Ethiopia

Summary

• The National Bank of Ethiopia issued a significant amendment to its foreign currency directive, signed by Governor Eyob Tekalign (PhD) and effective immediately. The changes mark a major liberalization of foreign exchange access and use for service exporters, account holders, and investors.
• Key provisions: Service exporters can now retain 100% of their export proceeds in a forex retention account indefinitely, without time limits. Banks no longer require visa or travel documents to load foreign currency onto internationally recognized debit cards for account holders. The minimum balance requirement for opening foreign currency accounts has been removed, leaving discretion to individual banks. Cash declaration requirements for amounts exceeding USD 10,000 (or equivalent) have been rescinded for border entry, forex bureau exchanges, and bank deposits. Banks are now authorized to approve investor profit or dividend remittances from recognized foreign investments, without prior NBE approval in each case. Banks may also offer private forex loan guarantees up to 10% of total capital, governed by single borrower limit rules.
• For BirrValue users, these changes improve flexibility and reduce paperwork for FX transactions. Remittance senders and service exporters benefit from simpler retention and withdrawal rules. Compare bank FX rates on BirrValue before converting—regulatory changes do not guarantee uniform pricing; banks still compete on spreads and fees.