Ethiopia’s Dollar Hunger Returns as Banks Chase 710 mln in FX Auction

August 21, 2026
By Mintesinot Nigussie

Ethiopian banks have bid for 710.14 million US dollars in a special foreign exchange auction in which the National Bank of Ethiopia offered 500 million US dollars, leaving more than 210 million US dollars in demand unmet.

The auction, held on August 20, drew participation from 22 banks, with 21 securing allocations, according to results released by the central bank. Total bids exceeded the amount available by 210.14 million US dollars, with the auction meeting about 70 percent of the demand submitted.

The marginal, or cut-off, rate was 160.2121 birr to the US dollar, while the weighted average rate of successful bids stood at 160.2144 birr. Successful bids ranged from 159.5003 birr to 160.2500 birr per US dollar.

The outcome contrasts sharply with the National Bank's previous special foreign exchange auction of the same size in February.

In that auction, banks submitted bids worth 455.29 million US dollars against the 500 million US dollars offered, leaving 44.71 million US dollars unallocated. All 30 participating banks were successful.

Six months later, the same 500 million US dollar offering attracted 710.14 million US dollars in bids, pushing demand 42 percent above supply and leaving 210.14 million US dollars in bids unmet.

The latest auction also cleared at a higher exchange rate. The weighted average rate rose from 153.2503 birr per US dollar in February to 160.2144 birr in the August 20 auction, while the marginal rate increased from 152.0079 birr to 160.2121 birr.

The auction forms part of the National Bank's use of foreign exchange sales to supply commercial banks under the country’s market-based exchange rate regime.

Source: FSX Business News