Fixation of Daily Foreign Exchange Cash Notes and Transaction Rate (as Amended)

Fixation of the Daily Foreign Exchange Cash Notes and Transaction Rate (as Amended) Directive No. FXD/60/2018 WHEREAS; there is a need to amend NBE directives issued with regards to fixation of daily foreign exchange buying and selling rates to create a clear computation among banks; NOW, THEREFORE, this directive is issued by the National Bank of Ethiopia pursuant to Article 27(2) of the National Bank of Ethiopia Establishment (as amended) Proclamation No, 591/2008.

1. Short Title This Directive may be cited as “Fixation of the daily foreign exchange cash notes and Transaction rate (as Amended) Directive No. FXD/59/2018.”
2. Definitions In this Directive, unless the context provides otherwise, the following terms shall have the meanings ascribed below. 1/ “NBE” means the National Bank of Ethiopia; 2/ “bank” means any bank and/or its forex bureau engaged in foreign exchange transactions; 3/ “Foreign Exchange daily Indicative rate” means the daily indicative rates issued by NBE in a daily basis; ¾› =ƒ Äå Á wN ?^ © v”¡ NATIONAL BANK OF ETHIOPIA ADDIS ABABA TELAGRAPHIC ADDRESS PLEASE ADDRESS ANY REPLY TO N A T I O N B A N K P. O. Box 5550 TELEX 21020 ADDIS ABABA CODES USED PETERSON 3rd & 4th ED. BENTLEY’S 2nd PHRASE A. B. C. 6 th EDITION.

3.Foreign Exchange Rate Fixation The foreign exchange daily rate for both cash and transaction shall be fixed and utilized as follows:

1. The foreign exchange buying rate of a bank shall be the NBE interbank foreign exchange market indicative buying rate of the day.
2. The margin set between the buying and selling rate of the bank shall not exceed 2% (two percent) from NBE interbank foreign exchange market indicative buying rate of the day.
3. Daily buying and selling rate shall be posted in a publicly visible place and bank shall use the posted rate throughout the day.
4. A bank may buy foreign exchange from the retention account holder at negotiable rate not exceeding its selling rate of the day. 4 Penalty
5. Any bank that fails to comply with the requirements of any provision of this directive by any means shall be subject to a fine of Birr 10,000(Ten Thousand Birr) for each violation.
6. The National Bank of Ethiopia, in addition to the penalty provided under sub-article (1) of this article may take any other measure it considers necessary in line with Article 17 of the Banking Business Proclamation No. 592/2008. 5 Repealed Directive
7. “Fixation of the daily foreign exchange cash notes and Transaction rate Directive No. FXD/43/2014 is here by repealed and replaced by this Directive

6. Effective Date This Amendment Directive shall enter into force as of February 15,2019