The National Bank of Ethiopia (NBE) has officially released the outcomes of its most recent foreign exchange auction, which took place today, offering a total of $70 million to participating commercial banks.

According to the report issued by the central bank, the average exchange rate at which the foreign currency was purchased by successful bidders was 131.4961 birr per US dollar. The auction attracted significant interest from the financial sector, with 26 commercial banks securing allocations from the total amount offered.

The NBE noted that the auction was highly effective in addressing the current forex demands of the banking system. Approximately 96% of the total foreign exchange requests submitted by the participating banks were fulfilled, indicating a strong alignment between supply and demand in this round of currency distribution.

The National Bank emphasized that such foreign exchange auctions are part of its broader strategy to manage the country’s currency reserves efficiently and to ensure that hard currency is accessible to banks for critical imports and services.

Looking ahead, the central bank announced that the next foreign exchange auction will take place in two weeks, as part of its ongoing biweekly auction schedule aimed at stabilizing the forex market and enhancing transparency in currency distribution.

These auctions are a key tool in Ethiopia’s monetary policy framework, allowing the central bank to influence exchange rates and ensure that foreign exchange is allocated to priority sectors in a regulated and equitable manner.