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The National Bank of Ethiopia (NBE) has announced the licensing of independent foreign exchange (FX) bureaus as part of the country’s ongoing financial sector liberalization. This move follows the floatation of the Birr.
Starting in late July 2024, private entities owned by Ethiopian nationals, non-resident Ethiopians, and foreign citizens of Ethiopian origin can apply for licenses to operate FX bureaus. These bureaus are allowed to buy and sell foreign currency cash notes at negotiated rates, departing from the previously rigid bank-posted exchange rates.
To qualify, applicants must have a minimum capital of 15 million Birr and provide a 30 million Birr security deposit. They must also meet stringent requirements related to safety, counterfeit detection, staff credibility, and insurance.
This liberalization is expected to contribute to market-driven exchange rates and expand Ethiopia’s financial sector in line with global standards.
