To stabilise the exchange rate and maintain liquidity in the banking system, the National Bank of Ethiopia (NBE) held a foreign exchange auction on Tuesday, offering 150 million US dollars to thirty-one banks.
The weighted average rate of all successful bids was Birr 148.1007 per US dollar.
The latest auction represents one of the most extensive offerings since the central bank liberalised the exchange rate market.
In a statement on Monday, the central bank said it has been able to distribute a portion of the proceeds to commercial banks because foreign exchange inflows to its reserves have been steadily rising this fiscal year. The NBE claims that the action is consistent with its “price and external stability objectives.”
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“The 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 statement noted, adding that the central bank will continue to conduct periodic auctions “as needed.”
Auction accessibility
The auction was open to all commercial banks from 10:00 a.m. to 12:00 p.m., and the results were announced at 3:00 p.m.
This is the tenth auction NBE has held since launching its new foreign exchange trading system in August 2024. At the most recent auction, which took place on August 5, 2025, 150 million US dollars were up for grabs.
The weighted average exchange rate was 138.2555 Ethiopian birr to the US dollar. Throughout that session, allocations were made to twenty-eight commercial banks.
The central bank stated that the public and business community should continue to feel reassured that Ethiopia’s official foreign exchange markets are meeting FX demand and will do so for some time to come.
Significant improvements
This is the tenth such auction this year, a substantial increase from the $60 million special auction that took place in February.
The action comes after Ethiopia’s balance of payments steadily improved due to record gold deliveries to the National Bank, increased exports, and remittances. The NBE stressed that the auction will contribute to monetary stability while guaranteeing the private sector enough foreign exchange liquidity.
The apex noted that it will continue such a foreign exchange auction whenever the FX market deems appropriate. The precise date and time will be announced before the auction date.