
The National Bank of Ethiopia controls and
monitors the foreign currency within the country. It also controls and
monitors the export of products from Ethiopia. As export income is a
vital foreign currency generator for the country, we are required to
operate within strict transaction terms and conditions.

In coffee export, the delivery term permitted is only FOB loading Port
and payment is solely by irrevocable Letter of Credit. These two main
conditions are regulations that must be followed for any business deal
and contractual agreement regarding coffee trade.

In order to encourage international
customers to buy coffee, the National Bank of Ethiopia passed a new
regulation involving payment terms. These can now be 100% CAD at sight
for a contract of up to a total value of USD 200,000. Apart from coffee,
all other products can be offered on C&F basis.