The National Bank of Ethiopia (NBE) has announced the results of its 17th Foreign Exchange Auction, with the market clearing at a marginal rate of 155.05 birr per US dollar, marking a modest depreciation from the 154.82 birr per US dollar recorded in the previous auction.
The central bank allotted USD 70 million out of total bids amounting to USD 127.25 million, indicating continued strong demand for foreign currency. The weighted average rate of successful bids came in at 155.0506 birr per US dollar. Accepted bids ranged from a low of 154.8141 birr to a high of 155.0519 birr per US dollar.
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A total of 19 banks participated in the auction, with 8 banks successfully securing allocations.
The slight increase in the clearing rate compared to the previous auction suggests persistent pressure on the birr, driven by demand that continues to exceed supply, despite regular FX interventions by the central bank.
The narrow spread between the lowest and highest accepted bids also points to tight clustering of expectations among banks, indicating that the market is gradually forming a clearer price signal under the auction-based FX framework.
While the movement is marginal, it reinforces the trend of gradual birr adjustment, consistent with the NBE’s efforts to manage liquidity and allow a more market-reflective exchange rate.
The National Bank of Ethiopia stated that the next foreign exchange auction will be conducted in line with the announced schedule.
