National Bank of Ethiopia: $500M Monthly Forex Flow Now Available Through Banks
Addis Ababa, July 30, 2025 (FMC) — The Governor of the National Bank of Ethiopia (NBE), Ato Mamo Mehretu, has called on the business community to immediately cease using the parallel (informal) foreign exchange market. His remarks come amid a significant rise in the country’s official foreign exchange reserves and renewed efforts to stabilize the forex market through expanded auction mechanisms.
“The National Bank’s forex position is stronger than it has been in years. We now have the resources and the mechanisms to meet the country’s forex needs through formal banking channels,” said Ato Mamo.
💰 $150 Million Auction Reflects Improved Supply
In the latest foreign exchange auction conducted on July 29, a total of 28 commercial banks participated, and the National Bank allocated $150 million USD. The weighted average exchange rate was 138 birr per US dollar.
According to the NBE, all participating banks confirmed that they received the foreign currency they requested and have pledged to meet customer forex demands next week.
“This auction system not only boosts liquidity for banks but also helps stabilize the overall forex rate and counteracts volatility from the informal market,” the Governor noted.
📈 $500 Million in Monthly Supply to Private Sector
Ato Mamo also revealed that Ethiopia’s formal banking system is now supplying approximately $500 million USD in foreign exchange every month to the private sector—a dramatic increase reflecting improved market confidence.
“The amount of forex being distributed to legitimate businesses is growing fast. All banks have assured the National Bank that they will provide enough currency in the coming days,” he added.
⚠️ Strict Warning Against Informal Forex Use
Despite these improvements, the Governor issued a sharp warning to businesses and individuals still transacting in the parallel market. He emphasized that the NBE would take strict action against violators, including the confiscation of funds and other penalties.
“There is no longer any justification for relying on illegal forex sources. The complaints about insufficient supply have been addressed,” he stated.
He further assured importers that complaints about banks requesting deposits exceeding LC values have been resolved, and any such illegal practices can be reported directly to the NBE.
🛫 Forex for Travelers Available Legally
The National Bank also assured that individuals needing small amounts of foreign exchange—especially travelers—can access it without difficulty through licensed foreign exchange bureaus and commercial banks.
🌍 Ongoing Crackdown on Illicit Overseas Remittances
The Governor also highlighted continued operations against illegal money transmitters abroad, particularly those based in the UAE and elsewhere, who are actively attempting to distort Ethiopia’s financial system.
“We will continue cracking down on those trying to manipulate our economy from abroad. Legal channels are open and improving—there’s no need for backdoor dealings,” he warned.
📊 Key Figures
| Indicator | Value |
|---|---|
| Monthly Forex Supply to Private Sector | $500 million USD |
| Latest Auction Value | $150 million USD |
| Average Exchange Rate | 138 ETB/USD |
| Participating Banks | 28 |
| Forex Reserves | Tripled Year-over-Year |
📌 Final Call to the Business Community
Ato Mamo concluded with a direct appeal to Ethiopian businesses:
“This is a turning point. We have the tools to support a stable and fair market, but we need full cooperation from the business community to make it work.”
For concerns or reports about illegal practices in foreign exchange transactions, businesses are encouraged to contact the National Bank of Ethiopia directly via www.nbe.gov.et.
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