The National Bank of Ethiopia (NBE) today introduced revised regulations on foreign exchange-related spreads and fees.

In a press release, the NBE highlighted that it has been closely monitoring the foreign exchange market since the transition to a new regime on July 29, 2024. The new policy aims to address challenges identified during the initial phase, following consultations with the banking industry.

Previously, banks were required to include all foreign exchange fees and commissions within their trading spreads. However, based on lessons learned and industry feedback, the NBE has now modified this approach.

Under the new policy, banks must separately disclose their foreign exchange trading spreads, which should not exceed 2% of posted rates. FX-related fees and commissions must also be transparently disclosed and reported to the NBE. The changes are effective immediately and must be fully implemented by October 16, 2024.

Source: Fana BC