National Bank of Ethiopia has announced the results of its second $500 million special foreign exchange auction, with $455.29 million allotted to participating banks.
The special auction, held on February 21, 2026, drew participation from 30 commercial banks. Despite the sizeable offering, the auction was undersubscribed by $44.71 million, indicating that total bids fell short of the full $500 million made available by the central bank.
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The marginal rate (call cut-off rate) for the auction was set at 152.0079 birr per US dollar, while the weighted average rate of successful bids came in at 153.2503 birr per dollar. The highest accepted bid reached 154.0000 birr per dollar, and the lowest successful bid matched the marginal rate at 152.0079 birr per dollar.
The central bank stated that subsequent foreign exchange auctions will proceed according to the previously announced schedule.
Comparison with the Last Regular Auction
The latest special auction follows the most recent regular FX auction, where the central bank:
- Allotted $70 million
- Received $145.31 million in total bids
- Set the birr at 155.12 per US dollar
- Recorded participation from 31 banks
Unlike the regular auction, which was heavily oversubscribed, the second $500 million special auction saw demand fall short of supply. The difference in scale is notable, with the special auction offering more than seven times the amount allotted in the last regular sale.
The move marks the second instance in which the central bank has offered a $500 million tranche through a special foreign exchange auction, signaling continued large-scale intervention aimed at addressing foreign currency demand in the banking system.
