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The Ministry of Finance has lifted restrictions on Franco Valuta imports, allowing a broader range of goods to be brought into the country without using the Ethiopian banking system for foreign currency. However, the ban on fuel-powered vehicles and security equipment remains in place.
This policy change is part of the government’s wider macroeconomic reforms aimed at simplifying import procedures and addressing foreign currency shortages. Previously, Franco Valuta was limited to essential items like edible oil, rice, sugar, and baby formula. The new directive, issued by State Minister Eyob Tekalign, removes the need for Letters of Credit or other payment modalities.
The reforms come amid the recent decision to float the Birr, which caused a sharp devaluation of the currency, nearly doubling the exchange rate from 57 to 107 Birr per dollar. The Finance Ministry hopes that lifting these import restrictions will help stabilize the supply of goods and curb inflation.
Despite the relaxed rules, importers are still prohibited from bringing in vehicles with internal combustion engines and intelligence or security equipment.
