As many know, sending and receiving money in USD has always been a challenge in Ethiopia—but not anymore. Why is that?
Because with a dollar account, you can easily transfer or receive foreign currency without delays, restrictions, or high conversion costs. Here's how to open one and take full control of your international finances.
Opening a dollar account in Ethiopia is a smart financial step for individuals and businesses who want to manage international transactions, receive remittances, or invest in Ethiopia. The National Bank of Ethiopia (NBE), under Directive No. FXD/68/2020, outlines clear rules for opening and managing foreign currency saving accounts. In this blog, we’ll break down the benefits, process, and key requirements for opening a dollar account, including the minimum deposit amount and access to online application forms.
Why Open a Dollar Account in Ethiopia?
A foreign currency (or "dollar") account in Ethiopia offers several benefits:
- Facilitates international transactions: Make or receive international payments easily.
- Currency protection: Hedge against local currency depreciation.
- Foreign investment: Participate in global investment and real estate opportunities.
- Remittances: Easily receive and store money from abroad.
For a deeper dive into managing your finances in Ethiopia, check out our blog on How to Open a Diaspora Bank Account in Ethiopia.
Who Can Open a Dollar Account?
According to the NBE Directive No. FXD/68/2020, the following individuals are eligible:
- Ethiopian residents (citizens and foreign nationals residing in Ethiopia)
- Non-resident Ethiopians
- Non-resident foreign nationals of Ethiopian origin (with Yellow Card or similar documentation)
Types of Foreign Currency Accounts
Ethiopian banks offer different types of foreign currency accounts:
1. Interest-bearing savings accounts:
- Earn interest in foreign currency, but it's paid in Ethiopian Birr.
- Minimum rate is LIBOR + 4%.
2. Interest-free accounts:
- Ideal for those preferring non-interest options, such as for religious reasons.
3. Fixed (Time) Deposit accounts:
- Locked for a set period, with higher interest potential.
4. Current accounts:
- For frequent international transactions and business needs.
Permitted Currencies
Accounts can be opened in the following:
- US Dollar (USD)
- Euro (EUR)
- Pound Sterling (GBP)
Other convertible currencies like CAD, CNY, SAR, JPY, AUD, and AED can be deposited but are converted to one of the three main currencies.
Minimum Initial Deposit Requirements
The NBE has set minimum deposit amounts:
- Savings Account: USD 50 or equivalent
- Current Account: USD 100 or equivalent
- Fixed Deposit Account: USD 5,000 or equivalent
These minimums ensure banks maintain viable balances and meet NBE regulations.
Required Documents
To open a foreign currency account, prepare the following:
- Completed application form (see below)
- Valid passport or ID (Green Card, Yellow Card, etc.)
- Proof of residency abroad (for non-residents)
- Specimen signature
How to Apply: Step-by-Step
- Choose a Bank: Major banks like Commercial Bank of Ethiopia (CBE), Dashen Bank, and Awash Bank offer foreign currency accounts.
- Get the Application Form:
- Commercial Bank of Ethiopia Diaspora Account Form
- Berhan Bank Application Form (PDF)
- Tsehay Bank FCY Accounts
- Submit Documents: Provide ID and any required proofs.
- Deposit Minimum Amount: Based on the account type.
- Account Activation: After verification, your account will be active.
Using Your Dollar Account
Once open, your foreign currency account can be used to:
- Transfer or receive international funds
- Pay for education, travel, or medical expenses abroad
- Sell part of your balance to the bank
- Withdraw up to 10% in foreign currency using a debit card
- Provide collateral for local currency loans
- Invest in shares or real estate
Opening a dollar account in Ethiopia is more than just a convenience—it's a financial strategy for stability and international access. Whether you're part of the diaspora, a local investor, or a foreign national of Ethiopian origin, understanding the regulations and options helps you make smart choices.
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Source - National Bank of Ethiopia's Directive No. FXD/68/2020