The National Bank of Ethiopia has officially lifted a long-standing restriction that previously required all export trade permits for goods heading to the People's Republic of China to be processed exclusively through the state-owned Commercial Bank of Ethiopia (CBE).

 Effective May 26, 2026 (Ginbot 18, 2018 E.C.), all licensed commercial banks operating within Ethiopia are now authorized to issue export permits, manage documentation, and provide full trade finance services for exports to China.

Previously, based on a broad bilateral economic and financial cooperation agreement signed between the governments of Ethiopia and China, the export permit system was centralized. Under the reference letter No. GWMG/097/99, the NBE had restricted the clearance of China-bound exports solely to the Commercial Bank of Ethiopia (CBE).

The central bank states that this monopoly has been completely abolished. Any commercial bank holding a valid banking license in Ethiopia can now handle: ​export permit issuance, ​document organization and settlement, ​associated foreign exchange and trade services for the Chinese market.

The NBE has instructed all commercial banks to immediately align their trade operations with existing export and foreign exchange management directives to seamlessly serve exporters looking to trade with China.

​The primary objective behind this regulatory relaxation is to streamline the export sector and maximize efficiency. By removing the CBE monopoly, the NBE aims to foster a competitive banking environment. Exporters will no longer face potential bottlenecks or bureaucratic delays associated with processing all Chinese trade volume through a single state institution.

For exporters, this policy shift provides a massive boost by offering greater flexibility and choice. Instead of being restricted to a single state-owned bank, businesses can now work directly with their preferred private banking partners.

This open market environment is expected to drive down transaction fees due to increased competition, significantly accelerate processing times for trade permits, and overall make the export process to China far smoother and more efficient.

​Meanwhile, private commercial banks stand to gain access to a highly lucrative and previously locked market segment. Given that China is one of Ethiopia's largest and most vital trading partners, private financial institutions can now aggressively compete for high-volume trade finance and foreign exchange flows.This not only expands their service offerings but also significantly boosts their liquidity and cross-border transaction revenue.

​On a broader scale, the macroeconomy benefits from a more liberalized and dynamic trade ecosystem. By removing bureaucratic monopolies, this directive aligns perfectly with Ethiopia's ongoing economic reforms designed to foster private sector participation and modernize the financial sector.

Ultimately, opening up these banking channels is a strategic move to optimize trade efficiency, maximize export volumes, and accelerate much-needed foreign exchange inflows into the country.

This policy shift directly aligns with recent steps taken by the NBE to relax foreign exchange controls, modernize cross-border payment integration, and implement market-clearing exchange frameworks. By expanding payment options and trade processing channels, Ethiopia is positioning its export sector to be more resilient and responsive to international market demands.