The National Bank of Ethiopia (NBE) has announced that it will conduct the 17th round of its foreign exchange auction on Tuesday, February 27, as part of its ongoing policy measures aimed at controlling inflation and stabilizing the country’s foreign exchange market.
Under the auction, the central bank will offer USD 70 million to the market. Eligible commercial banks will be allowed to participate in accordance with the guidelines and operational rules previously issued by the NBE.
The foreign exchange auction program, which is held bi-weekly, was introduced as a market-based intervention mechanism to ease persistent foreign currency shortages, improve liquidity in the banking system, and reduce volatility in exchange rates. By injecting hard currency at regular intervals, the central bank aims to better align foreign exchange supply with demand, particularly for priority imports and productive sectors.
According to the NBE, the auctions are also intended to anchor market expectations, discourage speculative activity, and support broader macroeconomic stability at a time when inflationary pressures and external imbalances continue to challenge the economy.
The upcoming auction marks another step in the central bank’s efforts to gradually reform Ethiopia’s foreign exchange framework, while maintaining oversight and stability during the transition toward a more market-responsive system.
