Ethiopia Expands Foreign Exchange Services with Private Currency Exchange Offices.

Addis Ababa: The National Bank of Ethiopia (NBE) has granted licenses to five non-bank private currency exchange offices in line with its directive to expand foreign exchange services and boost the country's foreign exchange earnings. These new offices are expected to play a crucial role in developing the country's foreign exchange market by buying and selling foreign currencies and facilitating foreign exchange transactions for both import and export trade.According to Ethiopian News Agency, Ethio Forex CEO Efrem Tesfaye expressed that the market-determined exchange rate will foster a competitive economy. Recognizing the opportunity presented by the macroeconomic reform, they entered the sector to expand foreign exchange services and access through private sector involvement. He mentioned that they are buying and selling 10,000 to 15,000 US dollars a day and that they plan to expand the service in the future.CEO of Robust Business Group, Geetu Mulisa, highlighted the long-term benefits of legitimizing fo reign exchange transactions and expanding options, which can help narrow the gap with the black market. Private currency exchange offices are allowed to purchase up to USD 10,000 from customers without a customs declaration and larger amounts with a customs permit. They can sell up to USD 5,000 to private travelers and up to USD 10,000 to business travelers.These offices are already buying and selling significant amounts of US dollars daily and plan to expand their services in the future. The Governor of NBE, Mamo Mehretu, recently reported that the country's foreign currency reserves have increased by 80 percent following the implementation of macroeconomic reforms.