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Directive To Transfer NBE's Foreign Exchange Functions to Commercial Banks (Directive No. 50/2020)

National Bank Of Ethiopia50/2020

Summary

This directive transfers the foreign exchange functions of the National Bank of Ethiopia (NBE) to commercial banks.

Who's affected

Commercial banks and their customers engaging in foreign exchange transactions.

Action required

Commercial banks must implement the new procedures for handling foreign exchange transactions as per the directive.

Key points

4
  • Foreign exchange functions are transferred from NBE to commercial banks.
  • Commercial banks will be responsible for processing all foreign exchange transactions.
  • New procedures must be adopted by commercial banks.
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    • The directive aims to improve efficiency and accessibility of foreign exchange services.

Requirements

3
  • Commercial banks are to assume responsibility for all foreign exchange transactions previously handled by the NBE.
  • Banks must establish and adhere to new procedures for processing foreign exchange requests.
  • Banks need to ensure compliance with all relevant foreign exchange regulations.

Rights and permissions

2
  • Customers have the right to access foreign exchange services through designated commercial banks.
  • Commercial banks have the right to manage foreign exchange operations within regulatory frameworks.

Restrictions

2
  • Foreign exchange transactions are now exclusively managed by authorized commercial banks.
  • NBE will no longer directly handle individual foreign exchange transactions.

Penalties

1
  • Non-compliance by commercial banks may result in regulatory sanctions, including fines and suspension of privileges.

Objectives

3
  • To decentralize foreign exchange functions.
  • To enhance the efficiency of foreign exchange services.
  • To improve accessibility of foreign exchange to the public.

Organizations

2
  • National Bank of Ethiopia (NBE)
  • Commercial Banks
Original sourcehttps://justice.gov.et/en/directives/directive-to-transfer-nbes-foreign-exchange-functions-to-commercial-banks-directive-no-50-2020/
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