Ethiopia: The Ethiopian Government Lifts Foreign Exchange Permit Requirements for Food Commodity Imports through Franco-Valuta

On April 8, 2022, the Government of Ethiopia (GOE) passed a directive allowing franco-valuta imports of essential food commodities without foreign exchange permits. With the new decision, the GOE lifted the foreign exchange permit conditions imposed previously — a minimum import threshold of $250,000 and verification of the source of foreign currency with the National Bank of Ethiopia. The food commodities approved for direct importation through the franco-valuta scheme are wheat, rice, sugar, edible oils, and instant baby milk. The GOE removed the foreign exchange permit requirements for franco-valuta imports amidst a shortage of essential food commodities and rising inflation in the country.