The National Bank of Ethiopia (NBE) introduced sweeping reforms aimed at improving foreign exchange (forex) market flexibility, facilitating smoother trade, and enhancing travel allowances. These measures build on recent successes from the country’s forex auction system, launched in July 2024, which has already led to a doubling of exports, increased remittances, and stronger foreign currency reserves.
Among the key changes is a revision to the advance payment limit for importers. The cap, which had been set at USD 5,000 per transaction for many years, has now been raised to USD 50,000. This adjustment is intended to ease restrictions on importers making upfront payments to foreign suppliers.
The NBE has also raised the foreign exchange limits for travelers. Ethiopians traveling abroad will now be allowed to access up to USD 10,000 in foreign currency for personal travel and up to USD 15,000 for business travel. These amounts may be taken in cash or through debit cards. Individuals holding foreign exchange accounts will be permitted to use up to 20 percent of their balance via debit card, an increase from the previous 10 percent.
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