The National Bank of Ethiopia (NBE) has announced a significant change to its foreign currency retention policy, granting exporters greater flexibility over their earnings. Under this new policy, exporters will be permitted to retain 50 percent of the foreign currency they generate indefinitely while having the option to sell the remaining 50 percent immediately.
Previously, exporters were required to sell half of their foreign currency earnings to banks upon receipt, with the remaining half mandatorily sold within one month. This temporary policy was implemented to ensure a stable foreign currency supply within Ethiopia.
However, according to NBE Governor Mamo Mehretu, the revised policy is designed to provide exporters with more control, allowing them to retain 50 percent of their earnings indefinitely without the previous one-month deadline.
Governor Mehretu emphasized that the shift aims to support exporters by enhancing their financial autonomy and enabling them to better manage their currency resources, which is expected to foster a more stable economic environment.
He added that this adjustment is part of the NBE’s broader strategy to balance currency flow while catering to the operational needs of the export sector.
