SBB/96/2025 – LICENSING AND SUPERVISION OF BANKING BUSINESS FOREIGN EXCHANGE EXPOSURE LIMITS OF BANKS DIRECTIVE

The National Bank of Ethiopia has issued Directive No. SBB/96/2025, which sets out the rules and guidelines for the licensing and supervision of banking business, specifically with regards to foreign exchange exposure limits of banks. The directive requires banks to maintain their overall foreign exchange risk exposure within a limit of +/- 18% of their Tier 1 capital, and to report their foreign exchange positions to the National Bank on a daily basis, with non-compliance subject to administrative sanctions.