By Directive no. FXD/79/2022, The National Bank of Ethiopia (NBE) has reduced the amount of foreign currency available to banks and exporters.
Ethiopian banks are now to surrender 70% of their foreign earnings from export, remittance, and NGO transfers to the National Bank under the newly implemented 70-20-10 rule. This criterion was formerly restricted at 50%. (September 2021). This is a third amendment to the same directive since March 2021.
Exporters of goods and services and remittance recipients, on the other hand, have seen revenues drop from 40% to 20%.
The instruction has kept the percentage of earnings that must be surrendered to private banks at 10%, with the bank making payment to the customer at the prevailing buying exchange rate on the day the foreign currency is received.
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