Understanding the Limits on Foreign Currency Holdings in Ethiopia: A Guide for Travelers and Foreigners Visiting Addis Ababa
The National Bank of Ethiopia has set Limits on Foreign Currency Holdings in Ethiopia. This regulations aims to manage the inflow and outflow of foreign currencies. Travelers, whether visiting for tourism, business, or transit, need to be aware of these Limits on Foreign Currency Holdings in Ethiopia to avoid legal issues and ensure smooth financial transactions during their stay. This blog provides a detailed overview of Ethiopia’s foreign currency regulations, essential for anyone planning to enter or leave Ethiopia, especially through Addis Ababa.
Overview of Currency Regulations
Ethiopia’s currency Limits on Foreign Currency Holdings in Ethiopia are designed to control the amount of local and foreign currency that individuals can carry across its borders. According to Directive No. FXD/87/2024, the specific limits and rules are set to safeguard the country’s economic interests and maintain currency stability.
Local Currency (Birr) Limits:
Individuals entering or exiting Ethiopia are allowed to carry up to 3,000 Birr.
A higher limit of 10,000 Birr applies to travelers to and from Djibouti, reflecting the close economic ties between the two countries.
Foreign Currency Restrictions:
Foreigners and Ethiopians residing in Ethiopia must declare any amount exceeding USD 4,000 or its equivalent in other convertible currencies upon entry.
Non-residents, including foreigners of Ethiopian origin and Ethiopians living abroad, must declare amounts exceeding USD 10,000 or its equivalent.
All foreign currencies must be converted within 30 days of entry for residents and within 90 days for non-residents intending to stay longer.
Key Definitions for Understanding the Regulations:
Person Residing in Ethiopia: Includes Ethiopian nationals and foreigners with permanent or temporary residence permits.
Foreign National of Ethiopian Origin: Individuals of Ethiopian descent who hold nationality from another country and possess a valid identity card stating their status.
Convertibility: Refers to the acceptance of a foreign currency for exchange into the local currency (Birr) based on its market value.

Recommendations for Travelers and Foreign Residents
To navigate these regulations effectively, here are some practical tips on the Limits on Foreign Currency Holdings in Ethiopia:
Prior Preparation:
Before traveling, consult with your bank or a currency exchange service to understand the current regulations and exchange rates.
Obtain necessary documentation such as bank advice or customs declaration forms if carrying amounts near the threshold limits.
Upon Arrival:
Declare any amount that exceeds the Limits on Foreign Currency Holdings in Ethiopia, at the customs checkpoint using the provided Foreign Currency Customs Declaration Form.
Keep all receipts and declarations, as they may be required for currency conversion or future reference during your stay or at departure.
Managing Finances During Stay:
Convert your foreign currency at authorized banks or forex bureaus within the specified time limits.
For longer stays, consider opening a Non-resident Foreign Currency Account to manage your finances without frequent conversions.

Planning for Departure:
Reconvert your remaining Birr to your preferred foreign currency before departure, keeping in mind the Limits on Foreign Currency Holdings in Ethiopia and necessary declarations.
Ensure all financial obligations are met within the legal framework to avoid penalties or legal issues.
Understanding and complying with Ethiopia’s currency regulations can make your visit to Addis Ababa and other parts of the country hassle-free. By preparing in advance and adhering to the set guidelines, travelers and foreign residents can ensure smooth financial transactions and avoid any inconveniences or legal issues related to currency handling. As Ethiopia continues to grow as a hub in East Africa, staying informed about these Limits on Foreign Currency Holdings in Ethiopia is crucial for all visiting or residing foreigners.
Always check for updates on currency regulations as policies may evolve.
Consult with legal or financial professionals if planning to engage in significant financial transactions or investments in Ethiopia.

This guide aims to prepare you comprehensively for your travel to Ethiopia, focusing on the legal aspects of handling money but also enhancing your overall travel experience in this beautiful country.
If you have questions or comments or need representation, please don’t hesitate to get in touch with us.