NBE to Auction 140 Million USD to Commercial Banks

The National Bank of Ethiopia (NBE) is set to conduct its 31st foreign exchange auction, offering 140 million US dollars to commercial banks on October 27. Participating banks are required to submit their bids through the CSD-Based Foreign Exchange Auction System between 10 a.m. and noon, with results to be announced at 3 p.m. the same day.

This auction is part of the central bank's ongoing market-based foreign exchange regime, introduced in July 2024 as a cornerstone of the government's economic reform program. The NBE plans to supply a total of 840 million US dollars through six scheduled auctions during the second quarter of the 2026/27 fiscal year. This competitive bidding mechanism allows banks to offer their own rates for foreign currency, replacing the previous system of administratively fixed rates. The initiative aims to stabilize the currency market and address the ongoing demand for hard currency within the banking sector.