Ethiopia Conducts Sixth Forex Auction, Birr Weakens Slightly
The National Bank of Ethiopia (NBE) has sold USD 50 million in its sixth bi-weekly foreign exchange auction, part of its ongoing commitment to a market-based forex mechanism aimed at enhancing price discovery and external stability.
The weighted average rate of successful bids in this round reached ETB 133.1715 per US Dollar, compared to ETB 132.9643 in the previous auction held on May 7, 2025. This reflects a slight depreciation of the Birr by approximately 0.16%, consistent with the central bank’s strategy to gradually align the official rate with real market dynamics.
A total of 14 commercial banks received foreign currency allocations in today’s auction. The results suggest continued demand for USD among local banks, while the Birr’s modest weakening indicates a controlled shift towards a more competitive exchange rate regime.
The auction mechanism, introduced as part of broader monetary reforms in 2024, is designed to narrow the gap between official and parallel market rates, foster transparency, and ensure equitable foreign currency distribution.
The next forex auction is scheduled to take place in two weeks, with details to be announced ahead of time.
