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Ethiopian trade, payment methods and the FX rules

Module 01 / 5 · 50 min · Free preview

See what Ethiopia buys and sells, how goods reach the sea through Djibouti, and how the four payment methods and FXD/01/2024 shape every trade deal.

In this module you will learn to

  • Describe Ethiopia's main exports and imports and the Djibouti corridor
  • Explain advance payment, open account, documentary collection and letter of credit and rank them by risk to buyer and seller
  • Identify country, bank and FX risk in a trade transaction
  • Apply the FXD/01/2024 rules on import payment modes, export repatriation and retention, as amended

Built on

  • Erudite Africa training module: Ethiopian Context, topic 1.d International Trade Finance Instruments, Levels 1 and 2 (October 2026)
  • NBE directives as listed in the lessons: FXD/01/2024, FXD/04/2026, FXD/05/2026, FVD/01/2026, SBB/96/2025, SBB/99/2026, and the MPC No. 7 release (July 2026)
  • Ethiopian Investment Board Directive No. 1083/2025 and Special Economic Zone Proclamation No. 1322/2024
  • ICC rules: UCP 600, ISBP 821, URC 522, URDG 758, ISP98, URR 725, eUCP and Incoterms 2020
  • Commercial Code of Ethiopia (negotiable instruments), cited as reported

Examples and companies are fictional. Bank practices are shown as typical Ethiopian practice, not as any one bank's policy. Always apply your own institution's approved policy and the current NBE directives.