A simple guide to Directive No. FXD/04/2026
On February 12, 2026, Ethiopia’s central bank officially put into effect a new directive that relaxes the rules around foreign currency . These changes build on the reforms that started in 2024.
If you are involved in real estate whether you are buying, selling, or investing here is what you need to know. I have broken down the official directive into plain English.
Why These Changes Matter
The National Bank of Ethiopia says they made these changes for a few reasons :
To make it easier to do business
To help the foreign exchange market grow
To build confidence in the reforms
To encourage more foreign currency to come into the country
When more foreign money flows through official channels, the whole economy gets stronger. And a stronger economy is always good for property values.
The Big Changes at a Glance
Here are the most important amendments from the new directive, explained simply.
1. Forward Exchange Rates Are Now Allowed
Banks can now offer forward exchange rates to customers . This means you can agree on an exchange rate today for a transaction that will happen in the future. It helps protect you from sudden changes in the exchange rate. Good for businesses and anyone planning big international payments.
2. Service Exporters Can Keep All Their Foreign Currency
If you are a service exporter things like tourism, consulting, transportation, or engineering you can now keep 100% of your foreign currency earnings in a retention account . And you can keep it there for as long as you want. No time limit anymore.
3. Better International Payment Cards
Banks can now issue internationally recognized cards like Visa or Mastercard to foreign currency account holders . You can load foreign currency onto these cards and use them for online shopping or payments abroad. No need to show a visa or plane ticket first.
4. Easier Account Opening for Foreign Companies
Foreign companies with investment licenses can now open foreign currency accounts at any bank without getting approval from the National Bank first . Just bring your license and tax ID. Much simpler than before.
5. Profit-Making Institutions Can Open Forex Accounts
Even profit-making companies can now open foreign currency accounts, as long as the money comes from abroad as grants, gifts, or other sources (just not from export earnings) .
6. No Minimum to Open a Forex Account
The old requirement that you needed at least 100 US dollars to open a foreign currency savings account is gone . Removed completely. Anyone can open one now.
7. No More Cash Declaration Forms
If you are entering Ethiopia with foreign cash, you no longer need to fill out a customs declaration form to deposit it or exchange it . This applies to amounts over 10,000 US dollars too. Just walk in and do your business.
8. Use Your Forex for Family Expenses
Foreign currency account holders can now use their money to pay for their own, their spouse’s, and their children’s expenses abroad . This includes education, medical bills, and other services. You just need to show documents proving the relationship and the invoices .
9. Easier Profit Repatriation for Investors
Foreign investors can now send their profits and dividends abroad without asking the central bank for permission . Banks can approve these transactions themselves. They just need to report them to the National Bank monthly .
10. Banks Handle Foreign Loans Now
Banks can now handle approvals for external loans and supplier credits on their own . No need to go to the National Bank. The company just needs to sign an undertaking that they are following the rules. Banks report these monthly.
11. Banks Can Offer Foreign Loan Guarantees
Banks can now offer foreign exchange loan guarantees to private customers, up to 10% of the bank’s total capital . These guarantees are treated like loans, so they also have to follow single borrower limits .
12. Advance Payments for Exporters
Exporters can now receive advance payments from buyers overseas . The buyer and exporter just need to have a written agreement that spells out the terms. Show that to the bank, and you are good to go .
13. Advance Payments for Medical and Education
You can now pay up to 20,000 US dollars in advance for medical or education services abroad . No visa or ticket required. Just a letter from the hospital or school and your application .
14. Forex Bureaus Can Sell for Local Payments
Forex bureaus can now sell foreign currency cash for local payments like visa fees, immigration fees, and license fees . Just show proof of what you are paying for .
15. Security Deposits Being Released
Independent Forex Bureaus that have been operating for one year can now get their full 30 million Birr security deposit back . Those operating for at least six months can get half of it back . This gives them more working capital.
16. Higher Cash Holding Limits for Bureaus
Forex bureaus can now hold up to 25% of their capital in foreign cash at the end of each month . The old limit was only 10%. Anything above that has to be sold to banks within five days.
17. Import Permits Valid Longer
Import applications are now valid for 120 days from the date they are issued . Banks can extend that if needed.
18. Outward Investment Now Allowed
Ethiopian entities can now invest in other countries . Each case needs approval from the National Bank, but this is a major step forward.
19. Sending Money Abroad for Family
Resident Ethiopians can now send up to 3,000 US dollars abroad to support family members . Just apply at your bank and explain the situation.
What This Means for Real Estate?
So how does all of this affect the property market?
More foreign investment. When investors know they can easily bring money in and send profits out, they feel safer putting money into Ethiopian real estate.
Easier transactions for the diaspora. Ethiopians living abroad can now open accounts more easily and use their money to support family back home including helping them buy property.
A stronger economy. More foreign currency flowing through official channels means a more stable economy. Stable economies are good for property values.
More business confidence. The central bank says these changes are meant to build confidence in the reforms . Confident businesses invest. And investment drives demand for property.
A Few Things to Remember
Keep your documents in order. Banks will still need to see proof for most transactions.
Work with authorized banks and forex bureaus. Not everyone can do these things yet.
The system is still new. Give it time to settle.
The Bottom Line
Ethiopia is opening up its economy in a serious way. The new foreign exchange directive removes old barriers and makes it easier for money to move in and out of the country .
For anyone involved in real estate whether you are buying, selling, or just watching the market these are positive signs.
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