The National Bank of Ethiopia (the NBE) has announced that all banks will be required to use indicative prices set by the Ethiopian Customs Commission (ECC) for selected imported goods when opening letters of credit (LCs) and processing import-related foreign exchange transactions.
The new measure, which will take effect on January 27, 2026, is aimed at improving consistency, data integrity, and price verification in the country’s foreign exchange and import processing system, the NBE disclosed in a statement.
In a press release issued on Sunday, January 25, the NBE said the decision follows observations made during the implementation of the Consolidated Foreign Exchange Directive No. FXD/01/2024, which came into force in July 2024. The directive marked Ethiopia’s transition to a market-clearing exchange rate framework, allowing banks to negotiate foreign exchange buying and selling rates with their customers.
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While the directive repealed the previous “minimum price” requirement for imports, it placed responsibility on banks to ensure appropriate price verification when issuing letters of credit (LCs) and processing import permits. However, the NBE noted that prices used by many banks in LCs showed significant discrepancies when compared with reference prices applied by the Ethiopian Customs Commission.
“To harmonize price references used by the banking system with those applied by the Ethiopian Customs Commission and to ensure consistency in balance of payments data,” the central bank said banks will now be required to apply ECC indicative prices for selected imported items.
The NBE emphasized that the ECC prices will serve as indicative benchmarks, not fixed prices, in the processing of import-related foreign exchange transactions through LCs and other approved modalities.
The central bank also stated that it will continue to monitor the implementation of the measure and take further actions as necessary to support the effective functioning of the foreign exchange market in line with Ethiopia’s ongoing reform agenda.
