The National Bank of Ethiopia (NBE) has announced the commencement of a regular series of foreign exchange (FX) auctions to be held every two weeks. The initiative, set to continue over the coming months, aims to enhance stability in Ethiopia’s foreign exchange market and ensure efficient allocation of FX resources.
The decision follows Ethiopia’s comprehensive macroeconomic reform program launched in July 2024, which has significantly improved the country’s balance of payments position. Factors such as increased exports, higher remittance inflows, and rising capital inflows have contributed to record-high FX reserves at the central bank. A particularly notable driver of this improvement has been the surge in gold deliveries to the NBE, which serves as Ethiopia’s sole authorized gold exporter. This development has pushed the country’s FX reserves beyond initial projections.
In light of the strengthened foreign exchange position, the NBE will conduct bi-weekly FX auctions, allowing the private sector access to a portion of the accumulated reserves while also supporting the central bank’s monetary policy objectives. The auctions are expected to improve FX liquidity in the banking system and contribute to broader economic stability.
Auction Details:
- Amount: $50 million
- Auction Date: Tuesday, April 1, 2025
- Bid Submission: 10:00 AM – 12:00 Noon (via email at [email protected])
- Bid Results Announcement: 3:00 PM
- Settlement Deadline: End of day, April 1, 2025
This move comes on the heels of a special FX auction held on February 25, 2025, where the NBE offered $60 million to banks as part of its ongoing monetary policy strategy. With FX inflows surpassing expectations, the central bank continues to take proactive measures to prevent excessive monetary expansion while ensuring the private sector has sufficient access to foreign exchange.
