The National Bank of Ethiopia (NBE) has successfully conducted its 23rd Special Foreign Exchange Auction, allocating USD 100 million to participating banks at a marginal rate of 157.9999 birr per U.S. dollar.
According to results released by the central bank on Tuesday, the auction attracted total bids worth USD 236.3 million, more than double the amount offered, highlighting continued strong demand for foreign currency within Ethiopia’s banking sector.
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The weighted average rate of successful bids stood at 158.0000 birr per dollar, while both the highest and lowest successful bid rates were recorded at 158.0000 birr and 157.9900 birr per dollar, respectively.
A total of 16 banks participated in the auction, with eight banks securing foreign currency allocations.
The successful auction marks a return to the central bank’s foreign exchange auction program after last week’s scheduled auction was unexpectedly cancelled. On June 9, NBE announced the cancellation of the planned auction due to unforeseen technical issues, stating that a revised schedule would be communicated later and apologizing to participants for the inconvenience.
The resumption of the auction provides a fresh indication of the central bank’s efforts to improve foreign exchange market functioning and support liquidity in the banking system as Ethiopia continues its broader exchange rate and financial sector reforms.
Since the introduction of the auction mechanism, the NBE has increasingly relied on market-based allocation of foreign currency as part of ongoing reforms aimed at enhancing transparency and efficiency in the foreign exchange market.
The central bank stated that the next foreign exchange auction will be conducted in line with the previously announced schedule.
