Ethiopia to Put $840M Into Foreign Exchange Auctions Over Three Months

Ethiopia’s central bank will offer 840 million US dollars through six foreign exchange auctions over the second quarter of the 2026/27 fiscal year, increasing the supply available to commercial banks through its regular auction programme.

The National Bank of Ethiopia will offer 140 million US dollars at each auction, up from 125 million US dollars in each of the four regular auctions scheduled for the first quarter. The new programme begins on October 13 and runs through December 22, with auctions scheduled every two weeks.

The first-quarter programme put 500 million US dollars up for sale through four regular auctions. The central bank also held a separate 500 million US dollar special auction on August 20, bringing total foreign currency offered through both types of sales during the quarter to 1 billion US dollars.

Demand for the currency varied sharply across the regular first-quarter auctions. Banks submitted bids worth 470.17 million US dollars against 125 million US dollars on offer at the August 12 auction. Demand fell to 170.51 million US dollars at the August 26 sale.

The final two regular auctions were undersubscribed. Banks bid 120 million US dollars on September 9 and 123.49 million US dollars on September 23, against 125 million US dollars available at each auction.

The second-quarter programme increases the amount earmarked for regular auctions by 68 percent from the first quarter. It also raises the number of scheduled sales from four to six and the allocation per auction by 15 million US dollars.

The auctions are part of the central bank’s competitive foreign exchange allocation system, under which commercial banks bid for foreign currency. The NBE has been publishing auction schedules in advance as it implements reforms to the foreign exchange market.

Source: FSX Business News