Forex trading is legal in Djibouti and operates under a liberal regulatory framework with no foreign exchange restrictions. The Central Bank of Djibouti manages the country's currency and supervises financial institutions, promoting financial stability and regulating foreign exchange transactions (1). Djibouti offers a liberal framework with no exchange controls and a strong, stable currency governed by the currency board system, with the Djiboutian franc pegged to the US dollar since 1949 (2).
The Central Bank of Djibouti serves as the primary regulatory authority overseeing the banking system, setting monetary policy, regulating financial institutions, ensuring banking sector stability, and monitoring currency exchange. The bank's objectives include supervising and regulating financial institutions, managing exchange control, regulating transactions in foreign currency, and assisting with the detection and prevention of financial crime (1). Djibouti maintains an exchange system free of restrictions on payments and transfers for current international transactions, ensuring total convertibility and facilitating external transactions (2).
"Djibouti offers a liberal framework, with no exchange controls, and a strong and stable currency governed by the currency board system."
The government actively encourages foreign investment with no limitations on converting or transferring funds, allowing businesses to freely repatriate profits without restrictions. Djibouti has implemented an anti-money laundering framework aligned with Financial Action Task Force standards, requiring financial institutions to conduct due diligence and report suspicious transactions (1). In November 2024, Gafimoan concluded that Djibouti has a solid AML-CFT framework broadly in line with international standards, though largely the result of recent reforms (2).
Source:
https://www.state.gov/reports/2025-investment-climate-statements/djibouti/
https://african.business/2025/04/long-reads/central-bank-governor-vaunts-currency-stability
Last updated: 15-10-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.
