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Regulations - Financial

Ethiopia: NBE orders banks must use the Customs Commission’s indicative prices for LCs

Jan 25, 2026
Ethiopia: NBE orders banks must use the Customs Commission’s indicative prices for LCs


  • NBE now requires banks to use Ethiopian Customs Commission indicative prices for selected imported goods in Letters of Credit and import permits. 

  • The measure becomes effective January 27, 2026. 

  • It addresses price discrepancies between bank-used prices and customs reference prices. 

  • The action follows the implementation of consolidated Foreign Exchange Directive No. FXD/0V2024 from July 2024. 

  • Under the reform, banks can negotiate FX buying/selling rates directly with customers.  

Why it matters:

Aligning LC valuations with customs prices improves transparency and consistency in trade financing by reducing discrepancies between bank-approved hard currency amounts and official import valuation. It may enhance predictability of import cost calculations for businesses and customs duty assessments. This policy strengthens coordination between the National Bank of Ethiopia and the Ethiopian Revenues & Customs Authority in managing foreign exchange and trade finance procedures.