A Comprehensive Analysis of the Further Liberalization of Ethiopia's Foreign Exchange Regime: Directive No. FXD/04/2026 (February 2026)

On February 12, 2026, the National Bank of Ethiopia issued Foreign Exchange Directive No. FXD/04/2026 (the February 2026 Directive), amending the principal Foreign Exchange Directive No. FXD/01/2024 (the July 2024 Directive). Issued under Proclamation No. 1359/2025, the directive further liberalizes Ethiopia’s foreign exchange regime by delegating approval powers to banks, expanding foreign currency account access, easing retention rules, and permitting outward transactions. All amendments are effective immediately. We have summarized the major changes as attached.