Independent foreign exchange bureaus allowed for operation in Ethiopia

Addis Ababa: The National Bank of Ethiopia (NBE) has announced that it has begun accepting applications from independent foreign exchange (FX) bureaus for operation in Ethiopia.

The announcement came in line with the bank's newly approved foreign exchange directive that became effective on July 29, 2024, the NBE said Thursday in a statement.

"Independent FX bureaus will be authorized to engage in the buying and selling of foreign currency cash notes, and they will be allowed to conduct such transactions based on freely negotiated exchange rates," the central bank said, Xinhua news agency reported.

The bank said business entities owned by Ethiopian nationals, non-resident Ethiopians, or foreign citizens of Ethiopian origin, are eligible to operate independent FX bureaus.

The capital requirement for obtaining an independent FX bureau license, as well as other specific operating requirements, is stated in the bank's foreign exchange directive, it said.

With the expectation that independent FX bureaus can play an important role in addressing the needs of customers, the bank said operators of such bureaus are authorized to set buying and selling rates for foreign currency cash notes independently.

"With the licensing of independent FX bureaus, we are marking yet another important milestone to open up Ethiopia's financial sector and operate in line with global norms and best practices," the statement quoted NBE Governor Mamo Mihretu as saying