International Banking

Non-Resident Accounts

Types Of Non-Resident Accounts

  1. Non-Resident Foreign Currency accounts
  2. Non-Resident Non-Transferable Birr accounts
  3. Non-Resident Transferable Birr account
  • These accounts are opened for those organizations and individuals who are permitted to open NR – FCY account.
  • (Opening criteria and procedure are the same as that of NR – FCY account)
  • The balances of these accounts are expressed in Birr.
  • Transfers from these accounts are exempted from the exchange commission.
  • As the name itself indicates the balance of these accounts can be converted or transferred abroad or to NR – FCY account without prior approval of NBE.

Eligibility

  • Diplomatic mission offices
  • Diplomatic mission staffs (except for Ethiopian nationals)
  • Members of the International Community
  • International organizations and their organs


Import

Import

Import by Letter of Credit

An import Letter of Credit is an  undertaking given by Coopbank to a seller at the request and/or instructions of its customer, applicant ( buyer) to make sight payment or accept a bill of exchange (draft) drawn by the seller to pay it  after specific future date  provided all  terms and conditions of the Letter of Credit are complied with.

Import LCs, sight and acceptance or deferred payments are processed with less turnaround time in our dedicated trade service center with outstanding operational expertise.

Product feature

  • The issuing bank makes payment to the beneficiary or exporter against the receipt of complying stipulated documents.
  • The bank’s obligation to pay is solely conditioned upon the seller’s compliance with the terms and conditions of the LC
  • Payment is made on the basis of documents
  • Protect the interests of both buyer and seller

Import by Cash against Document (CAD)

CAD is a payment arrangement in which an exporter instructs a bank (Remitter bank) to forward shipping and title documents to the importer’s bank (Coopbank) with a request to present these documents to the buyer for payment, indicating when and on what conditions these documents can be released to the buyer.

Our Trade service center efficiently process import transactions on cash against payment mode of payment.

Import by Advance Payment

Advance payment is a prepayment method through which a seller receives payment from a buyer prior to shipment of the agreed-upon goods or rendering the agreed-upon service. Allows a special drawing right to the seller to collect payment before presentation of shipping documents.

Import-Payment is through bank transfers

Features

  • Goods shipped at seller conveniences
  • Payment is received prior to the transfer of ownership of the goods
  • Buyer shall not make any payment until they receive the goods.
  • Allows the buyer to import goods at relatively lower finance cost.


Guarantee (Foreign)

Indirect Foreign Bank Guarantee

Coopbank issues an indirect foreign bank guarantee on behalf of a foreign bank (correspondent bank to compensate (pay the sum of money) to the beneficiary (local or foreign) if the obligator/principal fails to fulfill his/her /its obligations in accordance with the terms and conditions of the contract.

Types of guarantee:

  • Bid Bond Guarantee
  • Advance Payment Guarantee
  • Performance Bond Guarantee


Money Transfers

Money Transfers

Transfer more money quickly, easily and safely with Coopbank through SWIFT and Money Transfer Operators (MTOs)

Incoming Transfer through MTOs

An international electronic transfer of funds in a specific currency and amount to a friend, relative, or company residing in Ethiopia. We are working with the following MTOS.

  • Swift – CBORETAA
  • Western Union
  • MoneyGram
  • Dahabshiil
  • Transfast
  • Olympic
  • Banana Pay (Tawakal)
  • Amal Express
  • Worldremit
  • Ria

 Requirements

Valid and renewed ID card, passport, Driving License, Other government issue ID card

Through SWIFT transfer the recipient must have an account with Coopbank

Those recipients through MTOs, should know the security number of the remittance

Outgoing Transfer

A SWIFT transfer of funds to be made by the instruction of Coopbank customers to beneficiaries in foreign countries. Such transfers are payments for services (invisible), education, certificate renewal, medical treatment abroad, subscription fee for magazines, advertisements abroad, etc.

 Requirements

Duly signed foreign fund transfer application form (If the transfer is against the debit of FCY accounts) duly completed, signed and stamped foreign -exchange application (For invisible payments)

Supportive documents required as per the directive of NBE tailored to the purpose of the payment


Export

Export

Export by Letter of Credit/ Documentary credit

Letter of Credit is a commitment by Coopbank on behalf of its customer, the importer (buyer) that payment will be made to the beneficiary (exporter) provided that the terms and conditions stipulated in the letter of Credit are complied with.

LC is a secure international payment method for the importer and exporter.

Export by Cash against Document

Cash against Document (CAD)

CAD:  is a transaction whereby the exporter entrusts the collection of the payment for a sale to Coopbank (remitting bank), which sends the documents that its buyer needs to the importer’s bank (collecting bank), with instructions to release the documents to the buyer for payment.

 Features

  • Allows the importer not to pay for goods before shipment.
  • The collection cover letter gives instructions that specify the documents required for the delivery of the goods to the importer.
  • More favorable to the exporters to start manufacturing or ship the goods.
  • Exporter can eliminate credit risk or the risk of non-payment
  • The issuing bank makes payment to the beneficiary or exporter against the receipt of complying stipulated documents.

Export by Advance Payment

Also known as pre-payments, cash in advance is as it sounds. The buyer pays the seller in full before the merchandise is delivered and shipped off to the buyer.

Export- Payment through bank transfers.

Export on Consignment

Consignment basis payment is a method of payment in which the title to the goods remains with the Coopbank’s customer /seller/ until an agent (distributor) in a foreign country sells them.

Payment is made to the seller if and when the agent (distributor) sells the goods.


FCY Retention Account

FCY Retention Account

Forex retention account shall mean FCY account maintained by eligible exporters of goods and services and recipients of inward remittances from abroad. It can be opened to exporters and frequent SWIFT remittance receivers.

Types Of Retention Accounts

Eligible customers may open two types of foreign exchange retention accounts (current accounts), which shall be designated as “Foreign Exchange Retention A” and “Foreign Exchange Retention B.”
Retention Rights:

Exporters of goods and services, as well as recipients of inward remittances, shall have the right to retain their FCY earnings in retention accounts as follows:

Account “A”

Can retain thirty percent (30%) of his/her account balance for an indefinite period.

Account “B”

Can retain seventy percent (70%) of his/her account balance for up to 28 days after which period any balance shall automatically be converted in the next working day into local currency by the bank using the prevailing buying rate.