Ethiopian Central Bank Restricts Amount of Cash Travelers Can Hold, Sets Foreign Currency Conditions – Africa Bitcoin News

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. Local currency with a value exceeding $57.00 and 3,000 birr is not allowed to be owned by individuals. It also specifies the circumstances in which Ethiopian residents or non-residents can possess foreign currency and how they may use it.

Exchange All Foreign Currency with 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. Additionally, the directive became effective on September 5th and sets forth conditions that Ethiopian non-residents and residents may have and use foreign currencies.

The National Bank of Ethiopia (NBE), in a statement, explains the precise value of the foreign and birr currency residents might have.

“According to the directive, a person entering into and departing from Ethiopia may hold up to [a]Maximum [$57.00]Travel to Ethiopia from Ethiopia costs birr 3,00 (birr three thousand). A person traveling to Djibouti can carry a maximum 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. The NBE required that residents with $4,000 in excess of their income file a declaration.

Foreign Currency Holdings

The central bank provided the following information regarding the foreign currency that can be used when travelling abroad.

A person who resides in Ethiopia can carry a foreign money abroad if they present a bank recommendation for foreign currency purchase within thirty (30 days) of that 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.

For foreign currency-holding persons who travel to Ethiopia via land transport, however, they must declare such holdings to the NBE if their value exceeds or equals $500.

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What are your thoughts concerning the National Bank of Ethiopia’s currency holding restrictions? Comment below and let us know how you feel.

Terence Zimwara

Terence Zimwara was a Zimbabwean award-winning journalist and author. He is a prolific writer on the economic woes of African countries, as well as digital currencies that can be used to provide an escape path for Africans.