National Bank of Ethiopia Issues Licenses to Five New Forex Bureaus

The National Bank of Ethiopia (NBE) has granted operational licenses to five new Independent Foreign Exchange Bureaus, marking a significant step in the country’s financial sector liberalization. The bureaus, which met the minimum requirements outlined in the NBE’s Foreign Exchange Directive No. FXD/Ol/2024, are:

1. Dugda Fidelity Investment PLC
2. Ethio Independent Foreign Exchange Bureau
3. Global Independent Foreign Exchange Bureau
4. Robust Independent Foreign Exchange Bureau
5. Yoga Forex Bureau

These bureaus will focus on the buying and selling of cash notes in major convertible currencies, a vital function in enhancing Ethiopia’s foreign exchange market. However, they are restricted from engaging in other forex market segments, such as bank-based transactions for Letters of Credit.

Under current regulations, forex bureaus can purchase up to USD 10,000 in cash notes from customers without a customs declaration. Amounts exceeding this limit require such documentation. For sales, travelers can buy up to USD 5,000 for personal trips and USD 10,000 for business purposes.

The NBE will closely monitor the operations of these bureaus to ensure compliance with established regulations. Requirements include maintaining operational, security, reporting, and record-keeping standards. Furthermore, to promote transparency, bureaus must display their buying and selling rates prominently and issue receipts for all transactions.

The introduction of these forex bureaus is expected to address the growing demand for foreign currency in Ethiopia.