Central Bank Orders Separate Commission Fees

Aug 4 , 2024

Banks are required to cease the collection of fees, commissions, or other charges when selling foreign exchange to their clients, and include the percentage of the transaction value in the spread between their buying and selling rates. The requirement imposed late last week by the National Bank of Ethiopia (NBE) sets exceptions for charges set in nominal terms for a few services related to Letters of Credit. Signed by Yenehasab Tadesse, director of foreign exchange & reserve management, the central bank stressed that this must not be equated with imposing any specific spread between banks' buying and selling rates or setting ceilings on the gap between these rates. Instead, NBE expects a competitive environment to prevail, ensuring fair practices without collusion in the setting of foreign exchange rates. Additionally, the existing exchange commission charged by the NBE will remain in place and continue to be collected by banks according to current practices and guidelines.