The National Bank of Ethiopia (NBE) has lifted a restriction that limited the number of proforma invoices importers could submit for foreign currency requests. This new policy allows manufacturers to submit an unlimited number of proforma invoices to commercial banks for foreign currency requests.
In July 2019, the NBE imposed restrictions on importers, limiting them to submitting no more than two proforma invoices to a bank when requesting foreign currency. This directive reversed a previous policy from 2016 that had mandated commercial banks to allocate foreign currencies without restrictions on the number or value of proforma invoices submitted by importers.
The 2019 directive initially intended to streamline the foreign currency request process and ensure equitable access by imposing a cap. However, it faced growing criticism from importers struggling with sourcing limitations.
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Recognizing the negative impact on production, the NBE has ultimately lifted the restriction.
Under the new policy, commercial banks now have the authority to process more than two proforma invoices submitted by importers.
