Addis Ababa, February 11, 2026 (FMC) – The National Bank of Ethiopia (NBE), the country’s central bank, has announced a broad relaxation of its Foreign Exchange Directive (FXD/01/2024) as part of reforms underway since the launch of Ethiopia’s comprehensive macroeconomic reform program in July 2024.
In a public notice issued today, the central bank said it has been progressively removing current account restrictions to support the development of Ethiopia’s foreign exchange market and has introduced further amendments to enhance market operations.
Under the revised measures, service exporters are now allowed to retain 100 percent of their export proceeds in foreign exchange retention accounts for an indefinite period.
Authorized banks in Ethiopia are permitted to issue internationally recognized payment cards to all foreign exchange account holders, enabling customers to make outbound retail payments, including e-commerce transactions, provided sufficient foreign exchange is available in their accounts.
Foreign exchange account holders, including retention account holders, may use their accounts to cover education, medical and travel expenses abroad for their spouses and children upon presentation of valid documents.
The amendments allow profit-making institutions to open current, savings and time deposit foreign exchange accounts, provided the foreign currency is obtained from abroad in the form of grants, gifts or other foreign exchange sources other than export earnings, for which retention accounts remain applicable.
The NBE has also removed the minimum USD 100 requirement previously required to open a foreign exchange savings account for resident and non-resident Ethiopians, including foreign nationals of Ethiopian origin.
Outbound investment by Ethiopians has been permitted, subject to case-by-case approval by the central bank.
In addition, individuals residing in Ethiopia who enter the country carrying foreign currency may, without presenting a customs declaration, convert the full amount at an authorized Forex Bureau into Ethiopian Birr or deposit it into their foreign currency accounts.
The directive allows outbound remittances of up to USD 3,000 for Ethiopians — both foreign exchange account holders and non-account holders — for family support, upon submission of relevant documents.
Authorized banks are now permitted to enter into forward exchange transactions without prior approval from the National Bank of Ethiopia. They may also fully handle approvals of external loans — both cash and in kind — as well as suppliers’ credit, in accordance with foreign exchange directive requirements.
Foreign direct investment companies, embassies and international organizations, including non-governmental organizations (NGOs), may open foreign exchange accounts at any authorized bank without obtaining prior approval from the NBE.
Exporters are allowed to receive advance payments from any party, provided the agreement clearly states that the transfer is an advance payment and that the agreed terms and conditions are presented to an authorized bank. Foreign currency receipts may also be treated as advance payments for future exports if properly indicated in transaction documentation.
Authorized banks are further permitted to offer private external loan guarantees not exceeding 10 percent of their total capital.
The amendments also allow banks to make advance foreign exchange payments of up to USD 20,000 per case, or its equivalent, for medical and education services without requiring visa and ticket documentation, based on proof from the foreign entity and the customer’s application.
Investors seeking to repatriate dividends are entitled to remit net profits abroad upon submission of the required documents. Commercial banks are mandated to ensure compliance with directive requirements without seeking additional approval from the NBE.
To strengthen the working capital of Independent Foreign Exchange Bureaus, the central bank has released the full Birr 30 million security deposit for bureaus that have been operational for one year or more, and half of the security deposit (Birr 15 million) for those operating for at least six months.
The cash holding limit for Independent Foreign Exchange Bureaus has been increased to 25 percent of their capital from the previous 10 percent, with any excess required to be sold to commercial banks.
Forex bureaus, including Independent Foreign Exchange Bureaus, are also permitted to provide cash foreign exchange sales for local payments such as visa, immigration and license fees upon presentation of payment evidence.
The National Bank of Ethiopia said the measures are intended to further strengthen and liberalize the country’s foreign exchange market in line with the ongoing macroeconomic reform program.