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Addis Ababa, Ethiopia — January 28, 2026
The National Bank of Ethiopia (NBE) has launched the country’s first Automated Interbank Foreign Exchange Market, a landmark move aimed at strengthening price transparency and accelerating Ethiopia’s broader macroeconomic and financial sector reforms.
The new platform enables commercial banks to trade foreign currency through a real-time, market-based system, shifting interbank FX transactions toward competitive price discovery driven by supply and demand. The system is operated by the Ethiopian Securities Exchange (ESX) using its automated trading infrastructure.
NBE Governor Eyob Tekalign (PhD) said the launch represents a major upgrade to Ethiopia’s foreign exchange market architecture.
“The interbank FX automated trading platform provides a transparent, efficient, and rules-based environment for all participants,” Eyob said at the launch. “It will strengthen market discipline, improve price discovery, and support the financial sector reform agenda.”
Market-Based Pricing Takes Center Stage
Under the new framework, interbank FX trades are conducted through real-time competitive bidding, giving all participating banks equal visibility into pricing and market depth. NBE said the mechanism is designed to improve wholesale FX price formation and establish a credible benchmark for the broader secondary foreign exchange market.
The reform is expected to enhance competitiveness within the banking system while reducing distortions that have historically constrained foreign currency allocation.
Strong Oversight Framework
Despite the shift toward market pricing, NBE emphasized that the interbank FX market will operate under strict regulatory supervision. Participating banks must comply with the Foreign Exchange Directive No. FXD/01/2024 and the Foreign Exchange Exposure Limits of Banks Directive No. SBB/96/2025, as well as newly issued FX Market Guidelines and a Code of Conduct aligned with international best practices.
The central bank said it will closely monitor market activity to ensure an orderly transition and safeguard financial stability.
ESX Powers the Trading Platform
The interbank FX market is hosted on ESX’s state-of-the-art automated trading platform, featuring a dedicated FX segment that supports real-time execution, price aggregation, and regulatory surveillance.
According to NBE, the unified platform eliminates information asymmetry among banks and enhances transparency across the market.
Supporting Broader Economic Reform
NBE said the launch will allow foreign currency to circulate more efficiently within the banking system, improving liquidity management and resource allocation. The initiative also marks another step toward modernizing Ethiopia’s financial markets and aligning foreign exchange practices with global standards.
