Ethiopia Deepens Shift from Controlled Foreign Exchange, Expands Hard Currency Access

Ethiopia is deepening its shift from a tightly controlled foreign-exchange regime toward a more market-oriented model, with significant implications for businesses, investors, and households. In February 2026, the National Bank of Ethiopia issued amendments relaxing longstanding FX restrictions and expanding access to hard currency—building on broader market-based reforms launched since mid-2024 to stabilise the economy, shift activity into the formal banking system, and build investor confidence.

A central change allows exporters—particularly in services such as tourism, engineering, and digital industries—to retain 100% of their foreign currency earnings indefinitely.

Investors can now repatriate net profits and dividends through commercial banks upon submission of documentation, allowing them to cash in on their investments and take funds out of Ethiopia more predictably.

The reforms also introduce forward FX trading, enabling businesses to hedge currency risk—an essential feature of modern financial markets.

At the household and retail level, access to foreign currency has eased. Banks can issue internationally recognised payment cards linked to foreign-currency accounts for overseas retail and e-commerce payments.

The minimum $100 requirement to open a foreign

exchange savings account has been abolished, and outbound remittances of up to $3,000 are permitted with documentation.

For businesses and investors, the implications are significant: retaining foreign earnings, repatriating profits more smoothly, and managing FX exposure reduces uncertainty and improves liquidity planning.

While some controls remain, Ethiopia is moving toward a more transparent and flexible FX framework, strengthening its integration into global trade and capital flows.