The National Bank of Ethiopia announced changes on 25 May 2026 allowing banks to approve letters of credit without prior central bank approval for certain clients.
The National Bank of Ethiopia has updated its foreign-exchange directive. Commercial banks can now approve Letters of Credit and Cash Against Documents for holders of foreign-currency and retention accounts without seeking prior approval from the central bank.
The revisions also require banks to standardize fees on an annualized pro-rata basis within existing maximum limits. These measures form part of the shift to a market-based foreign-exchange regime that began in July 2024.
Account holders may initiate shipments without prior bank approval though payments still require document verification. The National Bank of Ethiopia stated that the changes aim to remove bottlenecks and reduce costs for importers and exporters.
The central bank said it will continue to monitor the foreign-exchange market and take further steps if needed to maintain stability.