Addis Ababa, January 26, 2018 (FMC) — The National Bank of Ethiopia has released the official results of its latest foreign exchange auction, held today as part of its ongoing efforts to manage liquidity and stabilize Ethiopia’s foreign exchange market.

The central bank stated that a total of USD 70 million was made available for sale under the auction framework. Nineteen commercial banks submitted bids, reflecting continued demand for hard currency across the banking sector. Following the bidding process, eight banks were successful in securing foreign exchange allocations.

According to the auction outcome, the weighted average exchange rate was set at 155.0506 birr per US dollar, providing a market-based reference for foreign currency pricing. The rate reflects prevailing demand-and-supply conditions in the formal banking system and is closely watched by businesses, importers, and financial institutions as an indicator of broader foreign exchange pressures.

The National Bank emphasized that the auction mechanism is designed to improve transparency in foreign exchange allocation, narrow distortions between official and parallel market rates, and support priority imports such as fuel, pharmaceuticals, and essential industrial inputs. By using a competitive bidding process, the bank aims to gradually move toward a more market-responsive exchange rate system while maintaining macroeconomic stability.

The central bank further confirmed that foreign exchange auctions will continue on a biweekly basis, in line with its previously announced program. Officials noted that the policy is part of a broader monetary reform agenda intended to curb inflation, improve foreign currency availability, and strengthen confidence in the financial system.

Market participants are expected to closely monitor future auctions for changes in allotment size, participation levels, and clearing rates, as these factors will signal the National Bank’s policy stance amid ongoing pressures on Ethiopia’s balance of payments.