Addis Ababa – The National Bank of Ethiopia (NBE) announced significant reforms to its foreign exchange market regulations today, Tuesday, May 20, 2025. The changes aim to streamline foreign currency access for individuals and businesses, with a notable increase in the foreign exchange allowance for private travelers and a tenfold increase in import advance payment limits.
Under the new directives, private individuals traveling abroad are now permitted to access up to $10,000 USD in foreign currency, doubling the previous limit of $5,000 USD. For business travelers, the allowance has increased from $10,000 USD to $15,000 USD. Additionally, individuals with foreign currency bank accounts can now withdraw 20% of their account balance via debit card, up from the previous 10%. The NBE stated that these adjustments are designed to create a more “convenient environment” for travelers.
The reforms also address advance payments for importers. The previous $5,000 USD cap for importing goods has been significantly raised to $50,000 USD, a tenfold increase. The NBE indicated that this move aligns with practices in peer countries.
Furthermore, the central bank is taking steps to regulate foreign exchange service fees charged by banks. Banks are now mandated to ensure that any administrative costs and fees related to foreign exchange services do not exceed 4% of the transaction value. This new regulation, effective from next Monday, May 26, 2025, also requires banks to eliminate “various additional and minor service charges” to ensure transparency and ease of use for customers. Banks will also be required to publicly disclose their foreign exchange administrative fees on their websites starting June 2025.
The NBE, which implemented a market-based foreign exchange policy in July last year, stated that these recent reforms have yielded “positive results.” The bank highlighted a doubling of commodity exports, a significant increase in service and remittance income, and an improved flow of private and government capital. As a result, the foreign exchange reserves of commercial banks and the National Bank have “grown more than ever before.” The NBE expressed its firm belief that these latest adjustments will contribute to creating a foreign exchange market that meets the fundamental needs of financial clients and the private sector in the country.
