The National Bank of Ethiopia (NBE) has taken a significant step towards deepening the country's foreign exchange market by granting licenses to five companies to operate as Independent Foreign Exchange Bureaus.

In a statement released today, the NBE announced that Dugda Fidelity Investment PLC, Ethio Independent Foreign Exchange Bureau, Global Independent Foreign Exchange Bureau, Robust Independent Foreign Exchange Bureau, and Yoga Forex Bureau have been authorized to conduct foreign exchange transactions.

These bureaus will primarily focus on buying and selling cash notes of major convertible currencies, operating under the NBE's Foreign Exchange Directive No. FXD/01/2024. While they are restricted to spot transactions - with immediate delivery of currencies bought or sold, their establishment is expected to enhance the efficiency of currency exchange in Ethiopia.

Forex bureaus are permitted to purchase up to USD 10,000 in foreign currency cash notes from customers without requiring a customs declaration. For amounts exceeding this limit, a customs declaration must be presented. Additionally, forex bureaus can sell foreign currency to travelers with valid travel documents, allowing up to USD 5,000 for personal trips and up to USD 10,000 for business-related travel. The NBE will closely monitor the bureaus to ensure compliance with operational, security, and reporting standards.

To maintain transparency, the bureaus must display their exchange rates and provide customers with transaction receipts. The NBE expressed its anticipation for the growth of this sector, which it believes will contribute to the country’s economic development.

Source: NBE

Additional source: Fana BC