Regulatory Alerts2023-04-25
Added · Updated
Foreign Currency Cash Notes Holding by Commercial Banks
Commercial banks are limited to holding foreign currency cash notes up to 5 percent of their paid-up capital as a working balance at the close of each calendar month, with any excess required to be surrendered to the National Bank of Ethiopia within 5 working days. Banks may sell part of this holding at any time and must provide detailed lists of surrendered notes, paying a 0.15% service charge if proceeds are credited to a correspondent account, or selling to the National Bank of Ethiopia at the interbank forex market rate without charges. Commercial banks are prohibited from shipping foreign currency cash notes abroad or ordering consignments, must verify note genuineness using detecting machines, and are liable for any counterfeits found, which are debited from their reserve accounts. The directive applies to commercial banks operating in Ethiopia and takes effect on June 1, 2004.