Ethiopia’s National Bank Introduces Changes to Foreign Exchange Policy

• New FX policy caps bank spreads at 2% and mandates transparency in trading fees
• Banks required to explicitly disclose FX trading spreads and separate fees from October 16, 2024

Addis Ababa, Ethiopia – The National Bank of Ethiopia (NBE) has introduced changes to its Foreign Exchange (FX) policy, requiring banks to separately disclose FX trading spreads and fees while capping the spread at a maximum of 2% in line with international standards. Effective from October 16, 2024, banks must explicitly show the FX trading spread in their transactions and daily posted rates.