- There are three types of Foreign Currency accounts:
- FCY Accounts for foreign entities (FDI companies, international organizations, embassies, foreign NGOs)
- FCY Accounts for residents of Ethiopia and non-resident Ethiopians (including foreign nationals of Ethiopian origin)
- Retention Accounts for exporters of goods and services
- FCY Accounts for Foreign Entities
The following eligible foreign entities can open and operate non-resident FCY accounts:
- FDI Companies
- International Organizations
- Embassies and consulates
- Foreign NGOs
Foreign Individual employees of FDI companies, IOs, Embassies, and foreign NGOs can also open FCY account.
- Entries
NR FCY accounts will be credited with:
- Foreign exchange incoming from abroad
- Payments from Ethiopian residents authorized by NBE
- Payments from other non-resident foreign currency accounts
NR-FCY account holders are authorized to use their accounts for all foreign payments without any restriction. Funds credited to NR-FCY accounts can be transferred without NBE permit.
FCY Accounts for Residents of Ethiopia and Non-Resident Ethiopians, Including Foreign Nationals of Ethiopian Origin
The following are eligible to open FCY Account:
- Residents of Ethiopia, including individuals and not-for-profit organizations (for foreign exchange from grants or similar sources)
- Non-resident Ethiopian individuals
- Foreign nationals of Ethiopian origin
The types of accounts can be current accounts, savings accounts, or time deposit accounts. The terms, conditions, and interest rates for each type of account will be based on the agreement between the depositor and the bank.
The deposit account can be used as collateral to secure credit in local currency from domestic authorized banks, according to the bank’s credit policy.
Banks must maintain Foreign Currency accounts in:
- US Dollar
- Pound Sterling
- Euro and other NBE-approved currencies
Banks may accept deposits in convertible currencies (e.g. Chinese Yuan, Canadian Dollar, Saudi Riyal) and convert them to the account’s base currency at the spot rate.
FCY account for residents of Ethiopia and Non-Resident Ethiopians may be credited by:
- Wire transfer
- Foreign currency received through International Remittance Service Providers
- Foreign currency transfers for salary, rental, or other income earned by a resident in foreign currency.
The account can also be credited with:
- Transfers from any foreign currency account within Ethiopia with amounts over USD 10,000 (or equivalent) requires a signed and sealed declaration form from the Ethiopian Customs Commission.
Funds in a FCY account for residents of Ethiopia and non-resident Ethiopians may be used to
- Convert to birr or birr cash notes at the prevailing exchange rate.
- Make foreign service payments with supporting invoices.
- Withdraw FCY cash notes according to forex bureau rules
Funds may also be used to:
- Top up debit cards with a valid travel document as per forex bureau rules
- Transfer abroad up to the amount of the initial deposit plus any accrued interest for foreign nationals of Ethiopian origin
FCY Retention Accounts
Eligible exporters of goods and services can open foreign exchange retention accounts.
Credit
An exporter of goods is required to repatriate the export sales proceeds in foreign exchange to an authorized bank either before the actual export, at the time of export, or within a period of not later than 3 months or within such other period that NBE may from time to time prescribe for any class of exports or for any particular export. Funds can only be credited to retention accounts with the written authority of the recipient. Banks may credit retention accounts for merchants/entities licensed by NBE to handle cash notes and card payments for their sales. Funds can only be utilized by the same legal entity that holds the account and may be transferred to the entity’s current account for purposes such as importing goods, services, dividends, and external debt services, dividends, and external debt service.
Conversion Requirement
Exporters shall immediately convert into Birr, at a freely negotiated rate, 50% of their export proceeds to the Bank used in processing their foreign exchange transaction, while keeping the remaining 50% in their retention account.
The conversion requirement does not apply to foreign exchange related to foreign direct investment (FDI), foreign grants, all FCY accounts, external loans, and portfolio inflows.