The National Bank of Ethiopia (NBE) has mandated financial institutions in the country to separately include their forex trading spreads in their daily posted rates to enable transparency. The forex trading spread is the difference between a bank’s buying and selling rate for a foreign currency and should not exceed 2% for the posted rates. The Ethiopian apex bank has also required financial institutions to independently report and disclose forex-related fees and commissions to their clients. These FX fees shall also be regularly reported to the NBE for review and assessment. “However, based on lessons gained from experience and inputs received from the banking sector, it has now become important to review the earlier decision regarding the treatment of FX related spreads and fees,” NBE added.

Source: Ethiopian News October 16, 2024 01:06 UTC