Addis Ababa, May 20, 2025 – The National Bank of Ethiopia (NBE) has introduced new foreign exchange reforms to improve access and transparency for importers, travelers, and the banking public.
- •The move builds on gains from the July 2024 FX system launch, which drove up exports, improved remittance inflows, and raised foreign exchange reserves to record highs.
- •The changes aim to solve long-standing hurdles allowing, for example, importers to make larger advance payments, easing delays in sourcing goods.
- •Among other changes, the NBE has raised forex limits for personal and business travellers, and doubled the debit card limit for foreign exchange.
| Reform | New Limit or Policy |
|---|---|
| Importer Advance Limit | Raised from USD 5,000 to USD 50,000 per transaction |
| Personal Travel FX Limit | Up to USD 10,000 |
| Business Travel FX Limit | Up to USD 15,000 |
| Debit Card FX Usage | Limit increased from 10% to 20% of FX balance |
| Bank FX Fees | Capped at 4% for all forex purchases |
| Fee Transparency | Public disclosure begins June 2025 |
The NBE has also acted to control excessive bank charges. From May 26, 2025, banks must cap all FX-related service fees at 4%. This applies to forex purchases for goods, services, or currency notes. The central bank also advised banks to avoid extra fees for minor services.
In a push for transparency, all banks must publish their forex fees regularly on the NBE website starting in June 2025.
The NBE has been holding foreign exchange auctions, starting with a US$50 million auction on April 1st. The ongoing reforms aim to strengthen country’s foreign exchange market, support businesses, and improve service for individual users.
