The National Bank of Ethiopia set a weighted average rate of 154.3993 birr per US dollar in its eleventh bi-weekly foreign-exchange auction on December 2, allocating hard currency to 17 commercial banks.

The auction is part of the market-based system introduced in 2024, when Ethiopia moved from a controlled exchange-rate regime to a floating framework under its economic reform programme. Previous rounds in 2025 cleared near 132 birr, with the rate reaching 148 birr in October.

Although Governor Eyob Tekalgn (PhD) recently signalled that the birr could strengthen, the currency continues to weaken even at the central bank’s auction rate, reflecting persistent market pressures. Analysts said the bi-weekly auctions provide temporary relief for importers, exporters, and investors, easing pressure on the birr and allowing policymakers a window to manage immediate liquidity tensions. They cautioned, however, that such interventions do not address structural imbalances: Ethiopia consistently imports more than it earns from exports, remittances, and foreign investment, creating recurring foreign-exchange shortages.

The bi-weekly auctions operate under the central bank’s annual intervention plan for the fiscal year ending June 2026. The next session is scheduled in two weeks, in line with the published timetable.