NBE introduces new measures to reform foreign exchange market

As reported by Borkena

Summary

• The National Bank of Ethiopia has announced a new set of measures to reform the foreign exchange market as Ethiopia continues its transition to a market-based exchange rate regime.
• The reforms include caps on FX transaction fees charged by banks, which are intended to make official channels more attractive relative to the parallel market.
• Updated travel allowances and other FX allocation rules have been introduced to ensure that legitimate demand for foreign currency can be met through official channels.
• The measures are designed to narrow the gap between the official and parallel market rates by improving the functioning of the official FX market and reducing the premium that has historically existed in the informal market.
• These reforms support Ethiopia's commitments under its IMF Extended Credit Facility program, which emphasizes a flexible, market-determined exchange rate.
• BirrValue review: Fee caps and travel allowances make official banks more competitive. Compare rates and fees across banks on BirrValue before converting or traveling.