The National Bank of Ethiopia (NBE) announced that it has allowed Independent Foreign Exchange (FX) Bureaus to operate in Ethiopia.
The announcement came in line with the bank’s newly approved foreign exchange directive that became effective as of July 29, 2024, NBE said Thursday in a statement.
The National Bank of Ethiopia (NBE) disclosed in a statement that the directive permits independent forex bureaus to engage in the buying and selling of foreign currency cash notes.
Exchange rates can be negotiated between the bureaus and their clients, moving away from the previous rigid system of posted bank rates.
Eligibility for applying for an independent forex bureau license extends to entities owned by Ethiopian nationals, non-resident Ethiopians, and foreign citizens of Ethiopian origin, thereby introducing a diverse range of potential participants in the market.
According to the NBE, these bureaus are expected to enhance the foreign exchange market, addressing the needs of customers seeking to buy or sell foreign currency cash notes.
There is anticipation that the operations of these bureaus will contribute to the establishment of market-driven exchange rates.
According to the statement, the strategic importance of this development is a milestone to open Ethiopia’s financial sector and align it with global standards and best practices.
MG/as/APA