The National Bank of Ethiopia (NBE) has announced the results of Foreign Exchange Auction No. 20, allotting USD 70 million to commercial banks amid continued strong demand for hard currency.
The auction attracted USD 177.12 million in total bids, more than double the amount made available, signaling persistent foreign exchange pressures in the banking system.
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The marginal rate (cut-off rate) was set at 155.8800 Birr per USD, while the weighted average rate of successful bids came slightly higher at 155.9403 Birr per USD. The highest accepted bid reached 156.0500 Birr per USD, while the lowest successful bid stood at 153.8805 Birr per USD.
Out of 20 participating banks, only 9 secured allocations, underscoring the competitive nature of the auction.
Slight Upward Movement from Auction No. 18
The latest result marks a modest upward shift compared to Auction No. 18, where the birr settled at 155.12 per USD, with total bids of USD 145.31 million against the same USD 70 million supply.
While Auction No. 18 was also oversubscribed, Auction No. 20 saw even stronger demand, with bids exceeding supply by more than USD 107 million.
Contrast with the $500 Million Special Auctions
The development follows the NBE’s recent second $500 million special foreign exchange auction, where USD 455.29 million was allotted but overall demand fell short of the full tranche. Unlike the regular weekly auctions, which continue to be heavily oversubscribed, the large special auctions have shown mixed demand dynamics.
The divergence suggests that while structural FX shortages persist, liquidity conditions and bank positioning may vary depending on auction size and market expectations.
Continued Market-Based Allocation
The NBE stated that future foreign exchange auctions will proceed according to the previously announced schedule. The competitive auction framework remains central to Ethiopia’s broader monetary and exchange rate reforms, aimed at improving transparency and price discovery in the FX market.
