Ethiopia Grants Foreign Exchange Office Work Permits to Five Institutions
The National Bank of Ethiopia (NBE) has granted operating licenses to five non-bank foreign exchange bureaus, marking a significant step toward expanding foreign exchange services in the country.
These licenses are part of the central bank’s effort to diversify and improve access to foreign exchange services by allowing private entities, not directly affiliated with banks, to operate in this sector.
The newly licensed foreign exchange bureaus include Dugda Fidelity Investments, Ethio Independent, Global, Robust, and YogaForex. According to the NBE, these institutions were granted permits after fulfilling all the regulatory requirements.
These private forex bureaus are expected to play a key role in buying and selling foreign currency and facilitating foreign exchange transactions in coordination with banks, especially for international trade.
The bureaus will primarily handle immediate purchases and sales of foreign currency and will assist in the circulation of foreign currency needed for both incoming and outgoing trade activities.
In terms of transaction limits, the National Bank has set clear guidelines. The new offices can purchase up to $10,000 from customers without customs clearance.
For amounts exceeding this limit, customs clearance documentation will be required. Additionally, they are authorized to sell up to $5,000 to private travelers with valid travel documentation and up to $10,000 for business travelers.
It’s worth noting that since the introduction of recent foreign exchange policy reforms in July, Ethiopia has witnessed a significant shift in the foreign exchange market.
The value of the Ethiopian Birr has more than doubled, with the exchange rate currently standing at 120 Birr to 1 US dollar.
The National Macroeconomic Committee, chaired by Prime Minister Abiy Ahmed (Dr.), reviewed the progress of these macroeconomic reforms during a recent meeting.
The Prime Minister highlighted the stabilization of the foreign exchange environment over the past two months, stating, “We were able to observe a stable foreign exchange environment during the two months when the policy was implemented.”
The Prime Minister’s office also confirmed that the government has met its revenue targets and is on track to meet its broader macroeconomic objectives.
These reforms are expected to bolster Ethiopia’s economic stability and provide a much-needed boost to foreign exchange availability, benefiting businesses and travelers alike.
