Addis Ababa, August 8, 202 (FBC) – The National Bank of Ethiopia (NBE) today announced that it has begun accepting applications for Independent Foreign Exchange Bureaus, in line with the newly approved Foreign Exchange Directive (FXD/01/2024) that became effective July 29, 2024.
Independent FX Bureaus are authorized to engage in the buying and selling of foreign currency cash notes and are allowed to conduct such transactions on the basis of freely negotiated exchange rates with their customers.
Business entities owned by an Ethiopian national, Non-Resident Ethiopian, or Foreign Citizen of Ethiopian Origin are eligible to operate Independent FX Bureaus. The capital requirements for obtaining an Independent FX Bureau license, as well as other specific operating requirements, are laid out in Annex 5 of the Foreign Exchange Directive.
NBE expects that Independent FX Bureaus can play an important part in further deepening the foreign exchange market by addressing the needs of customers who wish to buy or sell foreign currency cash notes, an official statement from the central bank asserted.
Moreover, such FX Bureaus can help in the on-going process of market determination of the exchange rate. Operators of such FX Bureaus are authorized to set buying and selling rates for foreign currency cash notes independently from posted bank rates.
Reflecting on the announcement, NBE Governor Mr. Mamo Mihretu said; “With the licensing of Independent FX Bureaus, we are marking yet another important milestone in opening up of Ethiopia’s financial sector, and also bringing it in line with global norms and best practices.” The Governor added that the launch of FX Bureaus reflects NBE’s on-going implementation of its Strategy Plan commitments to “fundamentally transform the size, shape, and scope of Ethiopia’s financial sector over the coming years.”