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FX Rules Series: Independent Forex Bureau

A forex bureau may operate as a division of a bank or as an independent entity authorized by the National Bank of Ethiopia. Independent forex bureaus are authorized to engage in the buying and selling of foreign currency cash notes independently, without any affiliation with banks, and their operations are exclusively confined to this specific activity. An independent forex bureau can be established in any business organization, form fulfilling the capital, security deposit, facility, insurance, and other legal requirements.

The minimum required capital is ETB 15,000,000. A security deposit of ETB 30,000,000 is required to establish independent forex bureau. The full amount will be released after two years of continuous service.

  • Premise and Equipment

Applicants will be required to maintain operating premises and office equipment that meet the safety and security standards set by NBE. This includes, but not limited to, the installation of CCTV cameras, a secure vault with multiple custody, and other necessary security measures. Devices for detecting counterfeit notes are also required.

A team from the NBE licensing department will assess whether the premises and equipment meet these standards.

  • Insurance

Applicants will be required to ensure that sufficient insurance is procured to fully cover the maximum cash holdings that will be at forex bureau site at any given time.

  • Undertaking

Applicants will be required to sign an undertaking confirming that its staffs are people of integrity, credibility and competence, with no record of fraud, dishonesty, and corruption.

Independent Forex Bureau Operations

  • Buy and Sell

Independent FX bureaus are authorized to buy and sell major convertible currencies. These transactions should be carried out based on rates that are freely negotiated with the customers. All FX transactions must be conducted as spot transactions which require immediate delivery of the currencies being bought or sold.

  • Display Rates

Daily exchange rates must be clearly displayed. Cash notes must be bought and sold strictly at the posted rates until officially updated.

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