Addis Ababa, March 31, 2025 (FMC) — The National Bank of Ethiopia (NBE) today announced that it will be starting a regular series of foreign exchange auctions to be held every two weeks.
The auctions will be conduct. over a period of several months and are intended to ensure continued stability in Ethiopia’s foreign exchange market, the central bank said in a statement issued this afternoon.
Since the launch of a comprehensive program of macroeconomic reforms in July 2024. Ethiopia’s balance of payments position has been showing steady and significant improvement, thanks to rising exports. increased remittances. and higher capital inflows, NBE said.
The statement mentioned that FX reserves at the central bank have reached record levels.
In recent months, in particular, the delivery of record high gold supplies to the NBE (which is the sole authorized gold exporter in the country) has boosted the central bank’s gold holdings and increased the level of foreign exchange reserves above initial expectations.
In light of this higher-than-expected foreign exchange position. the NBE has decided to conduct an on-going series of bi-weekly foreign exchange auctions over the coming months, the central bank mentioned.
This operation will be providing the private sector with some portion of the foreign exchange accumulation that has been taking place at the central bank and will also aid in helping NBE meet its monetary policy objectives.
NBE also invited interested banks to submit their bids in the time frame and manner specified below.
Amount of FX Auction: $50 million
FX Auction Date: Tuesday April 1, 2025
Email submission: fxauction@nbe.gov.et
Bid Submission Period: 10am to 12 noon Bid Results Announcement: 3pm
Settlement: End of day April 1, 2025