Sadam Hussien Law Office

27/05/2026

26/05/2026

25/01/2026

The National Bank of Ethiopia letter is a binding regulatory instruction to all banks mandating strict compliance with the Minimum Price Directive when opening Letters of Credit (LCs) for imports, with effect from 19 Tahsas 2018 E.C. (January 27, 2026).
It prohibits banks from issuing LCs for import transactions priced below the prescribed minimum benchmarks, thereby removing bank discretion and making price compliance a legal precondition for access to foreign exchange. Although addressed to banks, the measure directly affects importers by limiting contractual pricing freedom and rendering non-compliant import contracts practically unenforceable.
The circular is legally grounded in NBE’s statutory authority over foreign exchange, banking supervision, and monetary stability, aiming to prevent under-invoicing, protect foreign currency reserves, and strengthen trade finance discipline, with non-compliance exposing banks to regulatory sanctions.