Auction size: National Bank of Ethiopia sold USD 500 million in its largest single foreign exchange auction to date.
Exchange rates: Weighted average clearing rate was 154.82 birr per USD with bids between 153.50–154.998 birr.
Demand: Total bids reached USD 592.3 million, exceeding supply by over USD 92 million.
Participation: 31 banks bid in the auction, 25 securing foreign currency allocations.
Policy context: Auction mechanism remains central to Ethiopia’s market-based FX regime post-2024 reforms.
Why it matters:
This record forex auction reflects active implementation of Ethiopia’s market-based foreign exchange policy and provides significant hard currency liquidity to the banking sector. Exchange rate discovery and allocation outcomes inform pricing and liquidity conditions for imports and financial planning across institutions.