Ethiopian exporters after the 2024 foreign exchange reform

An Addis Ababa coffee exporter ships to a roaster in Hamburg. Before July 2024 its dollars were converted at an official rate far below the parallel market. Since the National Bank of Ethiopia moved to a market-based rate, the gap has narrowed, and the exporter keeps a share of its proceeds in foreign currency under the new rules.

The reform

In July 2024 the NBE ended decades of a tightly managed birr and moved to a market-based exchange rate, with IMF support. The birr fell sharply against the dollar at first, and the gap with the parallel market narrowed.

Exporters' foreign currency

The reform also changed rules for exporters:

• proceeds must still be repatriated to Ethiopia through banks,
• exporters can retain a share in foreign currency accounts, under NBE directives,
• the rest is sold at market rates.

The shares are set in NBE directives and have been revised. Ask your bank for the current position.

Using retained currency

Retained foreign currency can pay for imports of inputs, equipment and services, which was a constant problem before the reform.

Accounts abroad

Ethiopian residents generally may not hold accounts abroad. Export proceeds come into Ethiopia.

Paying into Ethiopia: the local rail

Source: EthSwitch. Checked when this guide was last updated; the scheme's own page has the current figures.

Where Rivet fits

Rivet opens business accounts for registered companies after verification. Ethiopia-registered exporters must repatriate proceeds under NBE rules, so they should not hold funds abroad. Where available, partners abroad who bank with Rivet can pay Ethiopian bank accounts through Rivet's payouts. Rivet is not a bank; regulated partner institutions hold the funds.