Ethiopia’s central bank said on Monday it will hold a $150 million foreign exchange auction on October 14, its first such operation in more than two months, as part of efforts to boost liquidity and stabilise the currency market.
The National Bank of Ethiopia (NBE) said in a statement that improving foreign exchange inflows this fiscal year had allowed it to resume sales to commercial lenders, adding that the measure was aimed at supporting price and external stability.
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The last forex auction was held on August 5.
“Foreign exchange supply conditions continue to be robust and business and individual demand for foreign exchange is being widely addressed by the banking system,” the NBE said.
Commercial banks have stepped up allocations to clients in recent months following record inflows last year, it added.
Bids for Tuesday’s auction will be accepted between 10:00 a.m. and 12:00 noon local time via email, with results to be announced at 3:00 p.m. Settlement is scheduled for the end of the same day.
The central bank said it would continue to conduct periodic auctions “as needed” and urged the business community to remain confident in the formal market’s ability to meet foreign currency demand.
