The National Bank of Ethiopia (NBE) implements a new 70-20-12 rule for foreign currency management to reduce the amount of foreign currency available to banks and exporters. The percentage of earnings to be surrendered to private banks is 10%, with the bank paying the customer the prevailing buying exchange rate on the day the foreign currency is received.
Ethiopian banks are now to hand over 70% of their foreign earnings from export, remittance, & NGO transfers to the National Bank. This new directive is the third amendment to the March 2021 new rules for the retention of foreign currency management of 50%.
