F Ft.. - P. FTR S 41 FH, 4 - Q .? H National Bank of Ethiopia
F Ft.. - P. FTR S 41 FH, 4 - Q .? H National Bank of Ethiopia
h
NATIONAL BANK OF ETHIOPIA
ADDIS ABABA
Whereas, allowing Resident of Ethiopia, Non Resident Ethiopian Nationals and Non
Resident Ethiopian Origin receipt to open foreign currency saving account could
encourage saving and investment;
Now, therefore, pursuant to the authority vested in it by Article 20(2), 20(3) and 27(2) of
the National Bank of Ethiopia Establishment Proclamation No. 591/2.008, the National
Bank of Ethiopia has issued this Directive.
Article 1
Short Title
For the purpose of these Directives, unless the context provides otherwise;
Article -3
Eligibility Criteria
The following individuals may open a foreign currency saving account in any of
banks in Ethiopia.
a) Residents of Ethiopia
b) Non Resident Ethiopian
c) Non Resident Ethiopian Origin
Article 4
Opening Foreign Currency Saving Account
4.1 Non Resident Ethiopians and Non Resident Ethiopian origin can open foreign
currency saving account in person or by post in his/her name. Opening banks may
also establish contact with potential account openers using Ethiopian Embassies,
e-mail, fax, telex and/or other electronic media and power of attorney holders
authorized by the opening bank. The bank should however, receive authenticated
documents afterwards to open the accounts.
4.2 Resident of Ethiopia can open an account by producing required documents by
account opening bank.
4.3 A request for opening an account for deposit in foreign currency saving account
shall be accompanied by a letter of application and a specimen signature.
4.4 Two or more eligible joint depositors may together open a single account
4.5 Power of attorney holders are allowed to open foreign currency accounts but cannot
credit the account on behalf of non-residents and/or foreign nationals of Ethiopian
origin.
4.6 A minimum of USD 50 or equivalent in any other currencies stated under article 6
is required as an initial deposit to open the account
Article 5
Types of Permitted Account
5.1 A bank may open interest bearing or interest free foreign currency saving account
for Residents of Ethiopia, Non-resident Ethiopian and Non Resident Ethiopian
Origin depending on the choices of the account holders
5.2 The interest rate shall be calculated in foreign currency, but paid in local currency.
The minimum interest rate shall be L1BOR plus 4 percent subject to revision from
time to time by the National Bank of Ethiopia.
Article 6
Types of Currency
6.1 A bank is required to maintain for eligible foreign currency saving account holders in
the following types of currency only.
a) The US dollar
b) Pound Sterling
c) Euro
6.2 A bank may accept deposits in other convertible currencies that include Canadian
Dollar, Chines Yuan, Saudi Riyal, Japanese Yen, Australian Dollar and UAE Dirham.
And, these other currencies shall be converted to any of the three currencies
enumerated under Article 6.1 at spot exchange rate based on the preference of the
account opener.
Article 7
Crediting the Account
Article 10
Obligations of the Opening bank
The opening bank has the following obligations:-
a) It shall be responsible for maintaining confidentiality of the account of the
depositor.
b) Report the number of accounts opened and the balance in the account every month
to Foreign Exchange Monitoring and Reserve Management Directorate and
External Economy and International Relations Directorate of the National Bank
within 10 days after the end of each month.
Article 11
Exemption to the Opening bank
The foreign currency credited in foreign currency saving accounts shall not count towards
the 30% surrender requirement set under Directive No. FXD/54/2018.
Article 12
Inspection
National Bank of Ethiopia may undertake inspection of any opening bank at any time to
verify the opening bank complies with the provisions of these Directives.
Article 13
Penalties
12.1 Any bank that violates any of the provisions of these Directives shall be subject to a
penalty of Birr 10,000 (ten thousand) for each violation in accordance with the
Licensing and Supervision of Banking Business Directives No. SBB/35/2004."
12.2 Where an account holder violates the provisions of these Directives, the opening
bank may suspend the account and immediately report the case to NBE.
12.3 Any person who fails to comply with a provisions of this directives shall be
punished in accordance with article 26(1 )of the National Bank of Ethiopia
Establishments amended ) Proclamation umber 591/2008.
Article 20
Effective Date