Regulatory Alerts2023-04-25
Added · Updated
Establishment and Operation of Foreign Currency Saving Account for Residents of Ethiopia, Non-Resident Ethiopian and Non-Resident Ethiopian Origin
The National Bank of Ethiopia establishes rules for Residents of Ethiopia, Non-Resident Ethiopians, and Non-Resident Ethiopians of Origin to open foreign currency saving accounts with minimum initial deposits of USD 50 or equivalent. Permitted currencies include the US dollar, Pound Sterling, and Euro, with other convertible currencies converted at spot rates, and accounts may be credited via banking transfers, cash notes, or International Remittance Service Providers. Account holders may sell balances to banks, use funds for education, medical, and travel expenses abroad, withdraw 10% via debit card, or use balances as cash collateral for local currency credit, while withdrawals in foreign currency are generally prohibited except for specific documented expenses. Banks must report account details monthly within ten days, and violations incur penalties of Birr 10,000 per offense, with the directive entering into force on November 19, 2020.