The National Bank of Ethiopia (NBE) issued a new foreign exchange market directive on May 20, 2025, that caps commercial banks’ forex service fees at a maximum of four percent. Banks are instructed to adapt competitive, transparent, and streamlined pricing for all forex-related services. Effective May 26, 2025, total charges for purchasing foreign exchange whether for imports, service payments, or cash note purchases must not exceed the newly set limit. The directive also prohibits banks from imposing extra charges for minor or ancillary services. This is intended to simplify and clarify costs for customers. Starting June this year, all banks will be required to publicly disclose their forex-related fees on the NBE website, ensuring transparency. The reform package also raises transaction limits. The import advance payment ceiling has increased from 5,000 dollars to 50,000 dollars per transaction. Additionally, the foreign currency cash limit for travelers has been revised. Personal travelers may now purchase up to 10,000 dollars, and business travelers up to 15,000 dollars, either in cash or through debit card access. Holders of foreign exchange accounts can now use up to 20pc of their balances via debit cards, which is double against the previous 10pc limit. These reforms are expected to enhance flexibility for importers and travellers. At the same time, they align Ethiopia’s forex pricing practices with global norms. NBE expressed confidence that these measures will foster a more active, competitive, and transparent foreign exchange market that meets the evolving needs of consumers and the private sector.
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