Addis Ababa — The National Bank of Ethiopia (NBE) has released the results of its latest foreign exchange auction, marking another step in the ongoing shift toward a more market-responsive currency regime. According to the central bank, 17 commercial banks participated in today’s auction, with the average winning price for one US dollar settling at 154.3993 birr.



The auction is part of the NBE’s controlled move toward a price-discovery mechanism, a key component of Ethiopia’s broader macroeconomic reform agenda. The system is designed to narrow the gap between the official exchange rate and the parallel market, improve FX allocation transparency, and gradually ease pressure on foreign currency shortages.



The participation of 17 banks underscores the strong appetite for foreign currency within the financial sector, which continues to face high demand from importers, manufacturers, and service providers. While the NBE has not disclosed the total amount of foreign currency offered in the auction, banks typically bid aggressively due to chronic FX supply constraints.Bank investment advice



Financial analysts say the average price of 154.3993 birr per dollar provides a clearer reflection of market demand compared to administratively set rates, even though the auction mechanism remains partially regulated. The current official exchange rate remains significantly lower, indicating the government’s gradualist approach to exchange-rate liberalization.



The NBE confirmed that the next foreign exchange auction will take place in two weeks, following the bank’s regular auction calendar. This predictable schedule is intended to help commercial banks and major industries plan their FX needs more effectively.



Industry watchers expect future auctions to play a critical role in Ethiopia’s economic stabilization efforts, particularly amid inflationary pressures, external debt negotiations, and the ongoing restructuring of the national forex management system.



The auction results arrive at a time when Ethiopia is pursuing an IMF-supported economic reform program, which includes steps toward modernizing monetary policy, strengthening the financial sector, and transitioning to a more flexible exchange-rate framework.Dollar exchange rates



If sustained, the auction-based FX pricing model could signal the early stages of a shift toward a managed float system, although the timeline depends on macroeconomic stability, reserve levels, and donor support.



Economists will be watching closely to see how upcoming auctions influence price trends and whether the central bank expands the amount of FX made available. With demand expected to remain high, the auction mechanism will likely continue to shape market expectations and guide the gradual convergence of Ethiopia’s multiple exchange rates.