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The National Bank of Ethiopia (NBE) conducted its first foreign currency auction since the liberalization of the forex market in late July. A total of 27 commercial banks participated in the auction, with the average winning bid priced at 107.9 Birr per US dollar.
This new rate is approximately five Birr higher than the current rates offered by most banks.
The forex auction, part of Ethiopia’s broader macroeconomic reform, aims to stabilize the exchange rate and narrow the gap between official bank rates and the parallel market.
According to the central bank, the reform is already showing signs of success, with a noticeable reduction in the disparity between official and parallel market rates.
The NBE expects continued progress in achieving exchange rate stability as part of its long-term economic strategy.
