The National Bank of Ethiopia (NBE) has announced that it will hold a foreign exchange auction worth $70 million tomorrow as part of its ongoing efforts to stabilize the foreign currency market and manage exchange rate fluctuations.
In an official statement, the central bank confirmed that the auction is part of its regular biweekly foreign currency sales program, which aims to allocate limited forex reserves to key sectors of the economy. These auctions are typically directed toward commercial banks, who then channel the foreign exchange to priority areas such as fuel imports, pharmaceuticals, manufacturing inputs, and other essential goods.
The NBE called on eligible commercial banks to participate in the auction and submit their bids in accordance with the guidelines issued by the central bank. The statement emphasized transparency and fairness in the bidding process, noting that allocations will be made based on a competitive exchange rate mechanism.
This auction comes amid continued pressure on Ethiopia’s foreign exchange reserves and a growing demand for hard currency across various sectors. The central bank has reiterated its commitment to managing forex availability in a way that supports macroeconomic stability while addressing the needs of import-dependent industries.
Market watchers and businesses are closely monitoring the auction results, which are expected to influence short-term forex rates and liquidity conditions in the banking sector.
