Forex trading is legal in Eritrea but operates under extremely strict government controls and regulations. The Bank of Eritrea is the central bank responsible for regulating and supervising the banking sector, setting monetary policy, issuing the national currency Nakfa, and managing the foreign exchange system (1). The country's foreign exchange system is tightly controlled by the government, with strict regulations on the exchange of foreign currencies and limited opportunities for currency exchange outside state-controlled channels (1).
Eritrea operates a managed exchange rate system where the Bank of Eritrea controls the exchange rate of the Nakfa against foreign currencies. The Nakfa is not freely convertible on international markets, and exchange controls are in place to prevent currency speculation and stabilize the local currency (1). As part of efforts to direct capital towards development, Eritrean government laws strictly control how money comes into and exits the country (2).
"The country's foreign exchange system is tightly controlled by the government. The Bank of Eritrea manages exchange rate policies and the flow of foreign currencies."
Foreign currency transactions are heavily restricted, with limitations on the amount that can be brought into or taken out of the country. The government encourages use of the local currency for domestic transactions, while foreign currency can only be accessed through formal channels such as the Bank of Eritrea (1). Investors may retain up to 100% of their export earnings in foreign currency in accordance with Bank regulations, though repatriation of profits can be difficult or impossible due to complete government control of foreign exchange (2).
Source:
https://lawgratis.com/blog-detail/finance-law-in-eritrea
https://www.state.gov/reports/2025-investment-climate-statements/eritrea
Last updated: 15-10-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.
