In July, the National Bank of Ethiopia introduced Foreign Exchange Directive No. FXD/01/2024, aimed at liberalising the country’s financial sector. This directive decentralises foreign exchange management and enables banks to negotiate exchange rates while ensuring transparency through reporting. It also establishes the licensing of independent foreign exchange bureaus, expands foreign currency account options, and revises export and import procedures to facilitate trade.

Key changes include enhanced foreign exchange retention policies, which grant exporters greater control over their earnings, and new guidelines for external loans and supplier credits to promote transparency. These new policies are designed to create a competitive financial environment, attract investment, and address Ethiopia’s foreign currency challenges.

Our Ethiopia Team breaks down the main new provisions in the newsletter available here.