The National Bank of Ethiopia (NBE) has officially launched the country’s first Automated Interbank Foreign Exchange (FX) Market, marking a major step toward modernizing Ethiopia’s financial system.
The new market operates through the Ethiopian Securities Exchange (ESX) using an advanced electronic trading platform. For the first time, commercial banks can trade foreign currency with each other in a real-time, transparent, and competitive environment.
According to NBE, the platform allows foreign exchange rates in the interbank market to be determined by actual supply and demand, rather than administrative pricing. This is expected to improve price accuracy, strengthen market discipline, and deepen Ethiopia’s foreign exchange market.
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Speaking at the launch, NBE Governor H.E. Eyob Tekalign (PhD) said the platform represents an important upgrade to the country’s FX market infrastructure. He noted that the system provides a rules-based and efficient trading environment that supports better price discovery and aligns with Ethiopia’s broader financial sector reform agenda.
Under the new system, interbank FX transactions are conducted through competitive bidding among commercial banks. This process increases transparency and creates a reliable benchmark exchange rate for the wholesale foreign exchange market.
The platform also gives all banks equal access to market information, reducing information gaps and improving confidence in the system. Transactions are executed in real time, helping banks manage foreign currency liquidity more efficiently.
NBE emphasized that the market operates under a strict regulatory framework to ensure stability and integrity. Participating banks must comply with existing foreign exchange directives, exposure limits, and a formal FX Market Code of Conduct aligned with international best practices.
The automated platform also allows NBE to closely monitor market activity, strengthening supervision and reducing systemic risks.
The central bank said the successful launch reflects strong coordination between NBE and ESX, as well as sustained efforts to adapt modern market infrastructure to Ethiopia’s needs.
Overall, the new automated interbank FX market is expected to:
- Improve transparency and price discovery
- Strengthen foreign exchange management
- Enhance liquidity movement within the banking system
- Support Ethiopia’s ongoing macroeconomic and financial sector reforms
NBE described the launch as another important step toward building a more resilient, market-driven, and globally aligned financial system.
