Addis Ababa — December 1, 2025

The National Bank of Ethiopia (NBE) has announced that it will conduct its eleventh foreign exchange auction of the year on Tuesday, December 2, 2025, offering $50 million to participating commercial banks. The auction is part of the central bank’s renewed commitment to running a predictable, bi-weekly FX auction system aimed at stabilizing the foreign exchange market and managing inflationary pressures.

In a formal notice issued Monday, the central bank underscored that the bi-weekly auctions remain a core instrument of Ethiopia’s gradual FX market reform efforts. The NBE has been emphasizing tighter monetary discipline, measured liquidity injection, and increased transparency in FX allocation as it works to restore macroeconomic stability amid persistent foreign currency shortages.

Banks Invited to Bid Under Strict Submission Window

The NBE has invited all eligible commercial banks to submit their FX bids between 10:00 AM and 12:00 noon on Tuesday. Submissions will be accepted exclusively through the designated email address fxauction@nbe.gov.et, and the results are scheduled to be announced at 3:00 PM on the same day.

Successful settlements will be executed by the end of the business day on December 2, 2025, signaling the central bank’s intent to maintain a rapid, time-bound cycle that reduces uncertainty for banks and businesses dependent on foreign currency.

A Key Tool in Ethiopia’s Foreign Exchange Management

Foreign exchange auctions remain one of the NBE’s main policy instruments for guiding the FX market. Through these auctions, the central bank allocates hard currency to commercial banks at competitive bids, which are then used to serve priority sectors such as manufacturing, pharmaceuticals, agriculture, and other essential imports.

By offering a bi-weekly supply, the NBE aims to:

• Improve FX market transparency
• Prevent excessive exchange rate volatility
• Narrow the gap between official and parallel market rates
• Support the broader reform agenda targeting market-based price formation

The $50 million volume also aligns with the NBE’s gradual liquidity management strategy, which avoids large, disruptive injections of hard currency while still meeting critical import needs.

FX Pressures Remain High as Demand Outstrips Supply

Ethiopia continues to face significant foreign exchange pressures, with import demand far exceeding available supply. Sectors such as manufacturing and agriculture have repeatedly emphasized the importance of consistent FX auctions to sustain operations and procurement cycles.

Market analysts note that the December 2 auction will be closely watched by importers, banks, and macroeconomic observers, particularly as Ethiopia navigates ongoing reforms aimed at liberalizing the financial sector and stabilizing inflation.

Part of Broader Bi-Weekly Auction Calendar

Tuesday’s session marks Auction No. 11, indicating that the central bank has maintained a regular cadence of auctions throughout the year despite fiscal pressures and external economic shocks. The NBE has repeatedly stated that predictability is essential to restoring confidence in Ethiopia’s FX market—especially as foreign banks, fintech operators, and foreign investors pay increasing attention to Ethiopia’s economic trajectory.