Foreign Currency Accounts

Features:
NRT is a current account maintained in Birr by the debit of which funds can be transferred abroad in foreign exchange and/or used locally without the requirement of obtaining foreign exchange permit.

• All cheques issued on behalf of Non-Resident Accounts holders shall be distinctively marked N.R. Transferable.
• It can be transferred to other eligible foreign currency account in foreign currency.

NRNT is a current account maintained in Birr by the debit of which funds cannot be transferred abroad in foreign exchange without the requirement of obtaining foreign exchange permit.

Features:

• It is used to cover local expenses of the non-resident.
• All cheques issued on behalf of Non-Resident Accounts holders shall be distinctively marked “N.R. Non-Transferable Birr Account”. It cannot be transferred to other eligible foreign currency account or abroad in foreign currency without obtaining exchange control permit.

NRNT is a current account maintained in Birr by the debit of which funds cannot be transferred abroad in foreign exchange without the requirement of obtaining foreign exchange permit.

Features:

• It is used to cover local expenses of the non-resident.
• All cheques issued on behalf of Non-Resident Accounts holders shall be distinctively marked “N.R. Non-Transferable Birr Account”. It cannot be transferred to other eligible foreign currency account or abroad in foreign currency without obtaining exchange control permit.

It is an account at Tsehay Bank maintained by Ethiopians and foreign nationals.

Features:

• Non-resident Ethiopians shall mean all Ethiopian nationals living and working abroad for more than one year, Business entities owned by non-resident Ethiopians residing out of the country for more than one year and Ethiopian nationals in due process of leaving abroad for work, for more than one year who can produce authenticated documents.
• Non-resident foreign national of Ethiopian origin shall mean a non-resident and holder of valid identification card, obtained pursuant to proclamation 270/94, attesting that he/she is a foreign national of Ethiopian origin; and a business entity owned by non-resident foreign national of Ethiopian origin and located outside the territory of Ethiopia.

Additional requirements:

• Non-Resident account can be opened in person or by post.
• The Bank may receive letter of application, specimen signature and authenticated documents using the service of the Ethiopian Embassies, Correspondent Bank or Remittance service providers nearby to prove the identities of the applicant.
• Power of attorney holders are not allowed to open foreign currency account and credit to the account on behalf of the NR Ethiopian and/or foreign national of Ethiopian origin.
• Repatriation of the deposits shall not exceed the initial balance plus any interest receipt on the deposits.
• Crediting from local source is prohibited.
• Cash Note Crediting through IB (Inter-Bank) and Forex Bureau are prohibited. The Branch can credit cash Note acquired from abroad where the account is maintained.
• Two or more eligible depositors may jointly open a single account.

A. Fixed Time Deposit Features
Fixed (time deposit) account takes the form of a deposit certificate, issued in the name of the depositor and bear interest in foreign currency:

• Maturity period may vary based on the agreement made between the depositor and the Bank.
• The minimum amount required as an initial deposit to open a fixed time deposit account is USD 5,000 or its equivalent in any other eligible currency.
• The minimum initial balance i.e. USD 5,000 and any interest receipt on the deposits can`t be transferred abroad and shall be converted in to resident birr account upon liquidation of the account;
• The minimum maturity period for such an account shall be three months.
• Interest payment shall not be minimum of LIBOR rate (London Interbank Borrowing Rate) which will be fixed and posted on Bank`s visible place or portal;
• Interest income shall be free from income tax;
• It can be opened in more than one Commercial Banks and their branches;
• Account holder has an obligation to report upon permanent return to Ethiopia.
• The account may remain as non-resident FCY account if the account holder returns to Ethiopia for permanent settlement before maturity date of the account.
• Upon maturity, the deposit should be converted to resident birr account.

B. Demand Deposit Account

Demand Deposit Account takes the form of current deposits where withdrawals may be made at any time upon demand by writing a check and/or a pre-arranged procedure adopted by the Bank:

Features:

• The minimum amount of money required for an initial deposit to open a current account is USD 100.00 (One hundred) or its equivalent in any of the eligible currencies.
• The minimum initial balance i.e. USD 100 cannot be transferred abroad and shall be converted in to resident birr account upon closure of the account.
• It is non-interest-bearing account.
• All cheques issued on behalf of Non-Resident Accounts holders shall be distinctively marked N.R. foreign currency;
• It cannot be opened in more than one Commercial Bank working in Ethiopia;
• Transferred to other eligible foreign currency account in foreign currency is allowed.
• Account holder has an obligation to report upon permanent return to Ethiopia. The account will not be credited thereafter but the account holder may be allowed to utilize the left-over balance.

C. Non-Repatriable Saving Accounts
It is resident Birr account which may take the form of saving deposit that can be used for local payments only:

• Transfer to abroad without obtaining foreign exchange permit is prohibited.
• It can be operated using passbook or pre-arranged agreement with the client.
• It is interest bearing account.
• Interest payment on such account can go up to double of the minimum saving deposit interest rate fixed by NBE and rate will be indicated in the Terms and Tariffs of the Bank.

Foreign Airlines account is a special account that is allowed for foreign-airlines-operating-in-Ethiopia to enable them deposit foreign currency collections from their customers in relation to tickets sales. The foreign currency collected will be credited to this special account.

Features:

• Overdrawing from this account is prohibited.
• Crediting from local source is prohibited.
• No exchange commission is levied upon foreign transfer.
• It is non-interest-bearing current account but not operated by Check.
• Debited only to transfer excess sales to the head office of foreign airlines abroad with prior approval of the NBE. Thus, the status of the account should maintain as „NO-DEBIT‟ upon opening.
• The Letter of certificate issued by Ethiopian Aviation authority that certify the foreign airline allowed to operating in Ethiopia.

Foreign Exchange Retention Account is a non-interest-bearing foreign currency current account maintained by eligible exporters of goods and services; and recipients of regular remittances.

Features:

• Overdrawing of this account is prohibited.
• It cannot be operated by cheques.
• No exchange commission is levied upon foreign transfer.
• Foreign transfer and account-to-account transfer in foreign currency without exchange control permit is prohibited.
• Crediting from local source is prohibited.
• Cash Note Crediting through Inter-Bank and Forex Bureau are prohibited. Cash Note acquired from abroad can be credited by the Branch where the account is maintained.
• Exporters and regular remittance recipients have the right to retain 20% their foreign exchange earning in retention accounts and 80% of the foreign exchange earning shall be credited to the account holder in ETB at prevailing buying rate pursuant to NBE directive.
• Duty free shops have the right to retain seventy percent (70%) of their foreign currency earning on retention account B for 28 days and 30% on retention account A for unlimited period.

Foreign Exchange Retention Accounts Document Requirement

1. Exporters

• A letter of application; and
• A trade license for export business

2. Requirements for Recipients of Inward Remittances

• letter of application;
• Evidence that the applicant is a regular recipient of foreign exchange from foreign source at least for more than 6 uninterrupted months.

3. Additional Document Requirements for Other Customers

A. Embassies

• A letter of application that states the manner of operation, signed by the head of the delegation – that is, the Ambassador; and
• Diplomatic ID cards or passports of the signatories of the account.

B. Diplomats

• A letter of application which is signed by the ambassador or her/his delegate; and
• A diplomatic ID card or passport.

C. International Institutions (UN/AU/ECA and the likes)

• A letter of application; that states the manner of operation, signed by the head of the organization HO or regional office; and
• The ID cards or passports of the signatories of the account.

D. Foreign Investors

• Account opening permit from the NBE;
• Letter/Permit from Investment Office;
• ID cards or passports of the signatories of the account

E. Foreign non-Governmental Organizations (NGOs)

• A letter of application that states the manner of account operation-from the Organization`s Head Office or regional office; and
• ID cards or passports of the signatories of the account.

F. Foreign Employee of Embassy and International Institutions

• Resident ID of the applicant;
• A letter from the employer, which confirms that her or his salary is paid in a foreign currency.

G. Non-Resident Ethiopian and Ethiopian-Origin (Ethiopian in Diaspora)

1. For individual of foreign-nationals-of-Ethiopian-origin:-

• Ethiopian origin ID card issued by Immigration office or
• Valid passport and/or Identification card where foreign national of Ethiopian origin is explicitly identified;

2. For Individual of Non-resident Ethiopian National:

• Valid resident and/or work permit that certify the Ethiopian National living and working abroad for more than one year or
• Ethiopian Community ID certified by the Ethiopia embassy/consulate from the country where he/she is living and working for more than one year
• Individual who can produce authenticated documents that shows the due process of leaving the country abroad for work for more than one year;
• In addition to the afore-cited requirement, however, nonresident Ethiopian National living and working in neighboring and Middle East countries are expected to produce valid resident permit and/or work permit authenticated by Ethiopia Embassies and legation residing abroad;
• For business owned by Foreign National of Ethiopian Origin and located outside the territory of Ethiopia, certificate of ownership entitlement for the organization and/or article and memorandum of association.
• For business owned by Ethiopian National and located outside the territory of Ethiopia for more than one year, certificate of ownership entitlement for the organization and/or article and memorandum of association.

3. Allowable Foreign Currencies
The foreign-currency accounts are to be maintained in the following types of currency only:

• The US Dollar;
• Pound Sterling;
• Euro;

However, it is possible to accept deposits in other convertible currencies as dictated from time to time by NBE and converted to the above-mentioned allowable currencies at prevailing exchange rate.