May 26, 2026
The National Bank of Ethiopia (NBE) has introduced additional changes to its foreign exchange administration framework aimed at reducing bureaucratic bottlenecks, lowering transaction costs, and aligning Ethiopia’s trade finance environment with international best practices. These amendments revise the requirements established under Foreign Exchange Directive No. FXD/01/2024 (the “Green Directive”), originally enacted in July 2024 as part of Ethiopia’s transition to a market-based foreign exchange regime.
The latest measures specifically address approval delays and streamline the fee mechanisms applicable to Letters of Credit (LCs) and Cash Against Documents (CAD) on acceptance.
This legal update highlights some of the key changes introduced under the new Directive. Enjoy the read!