According to the National Bank of Ethiopia’s directive, which became effective on September 5, persons entering and departing the country in possession of local currency are now subject to new restrictions. Individuals may not hold local currency whose value exceeds $57.00 or 3,000 birr. The directive also sets conditions and circumstances under which Ethiopian residents and non-residents may possess and use foreign currency.
Converting All Foreign Currency at Authorized Forex Bureaus
The Ethiopian central bank recently issued a directive which sets a limit on the amount of the birr that “a person entering into and departing from Ethiopia” may have in their possession. In addition, the directive, which became effective on September 5, sets conditions and circumstances under which Ethiopian residents and non-residents may possess and use foreign currency.
In a statement, the National Bank of Ethiopia (NBE) outlines the exact value of both the birr and foreign currency that residents may hold.
“According to the directive, a person entering into and departing from Ethiopia may hold up to [a] maximum of [$57.00] or birr 3,000.00 (birr three thousand) per travel to and from Ethiopia. However, a person travelling to Djibouti may hold up to a maximum amount of [$190.00] birr 10,000 (birr ten thousand) per travel,” the NBE said.
For Ethiopians re-entering the territory of the landlocked African country, the central bank said they are required to “convert all foreign currency he/she is carrying at an authorized forex bureau for the equivalent sum in birr.” Alternatively, they can deposit the forex into a foreign currency account within 30 days of returning to the country, the central bank added. For residents holding $4,000 or more, the NBE directed that such individuals should make a customs declaration.
Declaring Foreign Currency Holdings
Concerning the use of foreign currency when traveling abroad, the central bank explained:
The directive states that a person residing in Ethiopia is allowed to travel abroad by carrying a foreign currency if he/she presents a bank advice issued for the purchase of the foreign currency within thirty (30) days from the bank advice.
On the other hand, when a non-resident foreign national of Ethiopian origin or a non-resident Ethiopian who owns foreign currency gets into the country, the central bank’s directive requires them to “present custom declaration” if the value of foreign currency held exceeds $10,000.
However, for foreign currency-holding individuals that enter Ethiopia using land transport, the NBE requires them to make a declaration of such holdings if the value is more than or equivalent to $500.
Register your email here to get a weekly update on African news sent to your inbox:
What are your thoughts concerning the National Bank of Ethiopia’s currency holding restrictions? Let us know what you think in the comments section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Leave a Reply