NBE Draws a Line Between Reference and Control in Import Price Valuation

The National Bank Of Ethiopia clarification follows confusion after banks struggled to apply the Customs Commission’s indicative import prices during foreign exchange (FX) processing. Introduced in January 2026, the policy seeks to harmonize pricing references between banks and customs valuations, addressing significant pricing discrepancies observed in Letters of Credit and import permits that risk undermining balance of payments data integrity.

Under the broader Foreign Exchange Directive No. FXD/01/2024, Ethiopia transitioned to a market clearing FX regime in July 2024, allowing banks to negotiate exchange rates directly with customers. This reform removed the minimum import price requirement, placing price verification responsibilities on banks. However, inconsistent valuation practices emerged, prompting NBE’s directive for consistent use of customs indicative data for selected import items.

The clarification stresses that indicative prices are reference points, not fixed or mandatory values, and banks should focus reviews on abnormal discrepancies rather than mechanically applying them to all transactions. By strengthening transparency, improving data consistency, and supporting smoother FX market functioning, this guidance aligns with Ethiopia’s ongoing economic reforms and efforts to formalize remittances and trade related foreign exchange operations.