The National Bank of Ethiopia (NBE) has announced a Special Foreign Exchange Auction scheduled for February 25, 2025, with a total offer of $60 million. The auction is open to all banks and aims to support the country’s monetary policy while improving foreign exchange market liquidity.
The auction follows Ethiopia’s comprehensive macroeconomic reform program, launched in July 2024, which has significantly strengthened the country’s balance of payments. The reforms have led to a surge in foreign exchange reserves, driven by rising exports, remittances, and capital inflows. A key contributor has been record-high gold supplies delivered to the central bank, which is the sole authorized gold exporter in Ethiopia.
With foreign exchange inflows exceeding initial expectations, the NBE is taking proactive steps to ensure that the additional liquidity does not contribute to excessive monetary growth and inflation. By selling a portion of the higher-than-expected reserves to the banking system, the central bank aims to maintain a prudent monetary stance while enhancing foreign exchange availability for the private sector.
The NBE will continue to monitor market conditions in the coming weeks and may conduct additional foreign exchange sales if necessary to support price stability and external balance.
Auction Details:
- Auction Date: Tuesday, February 25, 2025
- Bid Submission: 10:00 AM – 12:00 NOON (via email at fxauction@nbe.gov.et)
- Bid Results Announcement: 3:00 PM
- Settlement Deadline: End of day, February 25, 2025
