The Ethiopian Birr has continued its rapid slide against the US Dollar in the National Bank of Ethiopia’s (NBE) foreign exchange auction, marking one of the most significant adjustments since the platform was introduced to support market stability two months ago.
In the 11th round of the forex auction held today, the average exchange rate reached Birr 154.3993 per US Dollar. A total of 17 banks secured foreign currency allocations in this round.
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Just a month earlier, during the 10th auction, the average rate stood at Birr 148.1007, reflecting a 4.25% depreciation of the Birr in a single month.
The trend becomes even more striking when compared to the 9th auction held two months ago, where the average rate was Birr 138.2. This means the Dollar has strengthened by 11.72% over the two-month period.
While the NBE introduced the auction system to help stabilize the market and ensure more transparent allocation of foreign currency, the continued and rapid depreciation of the Birr highlights the intense pressure in Ethiopia’s foreign exchange market and the evolving dynamics of the broader financial landscape.
Source: Capital Ethiopia
