LAGOS, Aug 20 – Ethiopia’s central bank has allocated $500 million through a special foreign exchange auction after commercial banks submitted bids worth about $710 million, signalling strong demand for foreign currency in the domestic market.
The National Bank of Ethiopia said on Thursday that 22 banks participated in the auction, with the total value of bids reaching approximately $710 million. The weighted average exchange rate for successful bids was 160.2144 birr per US dollar, according to a post by the central bank on X.
The auction provides an important channel for banks to access foreign currency as Ethiopia continues to manage demand for dollars and broader pressures within its foreign exchange market. The gap between total bids and the amount allocated indicates that demand exceeded the funds made available through the special auction.
The outcome also provides a snapshot of prevailing foreign exchange pricing among participating banks, with successful bids settling at an average of 160.2144 birr per dollar.
