Regulatory Alerts2023-04-25
Added · Updated
Directive FXD/73/2021 Amendment of Retention and Utilization of Export Earnings and Inward Remittances
The National Bank of Ethiopia repeals Directive FXD/70/2021 and replaces it with new rules requiring banks to surrender 50% of foreign currency earnings from exports, private transfers, and NGO transfers. Eligible exporters and inward remittance recipients may retain 40% in foreign currency retention accounts indefinitely, while the remaining 10% must be surrendered to the bank for immediate conversion to Birr at the prevailing buying rate. Banks are authorized to open these accounts only upon written beneficiary authority and must report aggregate monthly balances to the regulator, facing a USD 5,000 penalty per violation. The directive takes effect on September 01, 2021.
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