Addis Ababa, August 5, 2025 — The National Bank of Ethiopia (NBE) has executed its largest foreign exchange auction to date, selling $150 million to 28 commercial banks at a weighted average rate of 138.2555 Birr per US dollar. The move marks another step in Ethiopia’s cautious shift toward a more market-reflective exchange regime.
This ninth FX auction, held under the central bank’s managed float system, reflects ongoing depreciation of the Birr amid high forex demand, inflationary pressure, and IMF-backed reforms.
🔍 Details of Auction No. 9 – August 5, 2025
- Amount Offered: $150 million
- Number of Participating Banks: 28
- Weighted Average Rate: 138.2555 ETB/USD
- Auction Type: Regular
- Auction Number: 9
Compared to the previous auction on June 19, 2025, which closed at 136.6286 Birr/USD, today’s result shows a 1.19% devaluation in just over six weeks.
📊 Chronological FX Auction Data (2024–2025)
| # | Date | Type | Auction No. | Avg. Rate (ETB/USD) | Banks |
|---|---|---|---|---|---|
| 1 | 07 Aug 2024 | Special | Not listed | 107.9000 | 27 |
| 2 | 25 Feb 2025 | Special | Not listed | 135.6185 | 27 |
| 3 | 01 Apr 2025 | Regular | Not numbered | 131.7095 | 12 |
| 4 | 17 Apr 2025 | Regular | Not numbered | 131.4961 | 26 |
| 5 | 07 May 2025 | Regular | No. 5 | 132.9643 | 16 |
| 6 | 22 May 2025 | Regular | No. 6 | 133.1715 | 14 |
| 7 | 05 Jun 2025 | Regular | No. 7 | 134.9519 | 12 |
| 8 | 19 Jun 2025 | Regular | No. 8 | 136.6286 | 11 |
| 9 | 05 Aug 2025 | Regular | No. 9 | 138.2555 | 28 |
📈 Exchange Rate Trend: Gradual Devaluation
Since the first regular auction in April 2025, the Birr has depreciated by nearly 5%, moving from 131.7 to 138.26 against the dollar. This is part of the NBE’s deliberate strategy to:
- Narrow the official and parallel market rate gap
- Boost formal remittance and investment inflows
- Address FX backlogs and import demands
- Meet structural benchmarks under IMF oversight
📌 What’s Next?
The NBE has said the timing of future FX auctions will be based on market developments and announced in advance. Analysts expect the bank to continue expanding both the frequency and size of auctions as part of Ethiopia’s broader forex liberalization plan.
For more, visit nbe.gov.et or follow @NBEthiopia on X (formerly Twitter).
