The National Bank of Ethiopia (NBE) has announced a fresh round of foreign exchange market relaxations, in what officials describe as a continuation of the country’s macroeconomic reform drive. The measures, unveiled on 11 February 2026, adjust several long‑standing restrictions and give exporters, banks and foreign exchange bureaus more room to operate.
The latest amendments are framed as part of efforts to “enhance” that market and support sectors that earn or use hard currency, from service exporters to travelers and NGOs.
Service exporters will now be allowed to retain 100 percent of their export proceeds in foreign exchange retention accounts for an indefinite period, a significant shift from previous retention limits and time caps. Any exporter may also obtain advance payments in foreign currency from any party, so long as the sending and receiving sides sign an agreement and the transaction is routed through an authorized bank under existing rules.
For private sector borrowers, authorized banks may issue external loan guarantees up to 10 percent of their total capital, widening access to credit backed by offshore lenders. Dividends due to foreign shareholders and other non‑resident investors can also be repatriated more smoothly, provided the necessary documents meet NBE’s requirements.
One of the more visible changes for ordinary customers is also the expanded use of internationally recognized payment cards linked to foreign exchange accounts. Authorized banks may now issue such cards for cross‑border retail payments, including online purchases, with the condition that account holders maintain a sufficient balance before using them.
Banks have also been given greater flexibility in handling foreign currency deposits and outflows. Profit‑making institutions and eligible organizations can open foreign exchange accounts to cover expenses such as subscriptions, tuition fees, medical bills and other payments abroad, subject to documentation and existing directive thresholds.
Independent foreign exchange bureaus are also among the main beneficiaries of the new notice. The NBE has increased the ceiling for cash holding from 15 percent to 25 percent of paid‑up capital and any reserve funds.
