The National Bank of Ethiopia (NBE) has finalized the licensing process for Independent Forex Bureaus, allowing more businesses and individuals to legally engage in the country’s foreign exchange market.
In July, the NBE introduced Foreign Exchange Directive No. FXD/01/2024, establishing guidelines for businesses seeking to operate as forex bureaus. Eligible entities must be legally established and owned by Ethiopian nationals, non-resident Ethiopians, or foreign citizens of Ethiopian origin. Additionally, they must meet a minimum capital requirement of Birr 15 million and provide a Birr 30 million security deposit, held in a blocked bank account.
Abebayehu Dufera, Deputy Director of Foreign Exchange Monitoring at the NBE, expressed optimism about the new forex bureaus, noting that licenses will be issued once coordination with the Ministry of Commerce is complete. This reform comes amid a broader overhaul of Ethiopia’s foreign currency system, including lifting restrictions on 38 imported commodities. The NBE’s move aims to enhance access to foreign exchange services, fostering economic growth and creating a more competitive financial environment in Ethiopia.
Source: Capital Ethiopia
