Regulatory Alerts2023-09-15
Added · Updated
Directive for Amendment of Retention and Utilization of Export Earnings And Inward Remittances Directives No. FXD/84/2023
The National Bank of Ethiopia mandates that banks surrender 50% of export earnings and 70% of inward remittances, allowing eligible exporters and recipients to retain 40% and 20% respectively in foreign currency retention accounts. These retained funds may be used for importing goods and services or sold to client banks at freely negotiating rates, provided the account holder holds the required business license and written authority is given for credits. Banks must report aggregate retention account balances to the National Bank of Ethiopia monthly and identify account numbers on related permits and tickets. This directive repeals Directives No. FXD/79/2022 and imposes a USD 5,000 penalty on banks violating its provisions, entering into force on August 11, 2023.