Economy
Ethiopia's Central Bank Scales Up Dollar Auctions to $140 Million
Businessfront · 2 hours ago · Read the Full Story on Businessfront
AI SUMMARY
The National Bank of Ethiopia is injecting $140 million into the banking system through its 31st foreign exchange auction as part of a quarterly schedule totaling $840 million.
- The National Bank of Ethiopia auctioned $140 million in its 31st foreign exchange auction held on 27 October.
- The sale is part of a quarterly schedule spanning October to December involving six sales of $140 million each, totaling $840 million.
- The 27 October auction is the second of the quarter, following an earlier sale on 13 October, with subsequent auctions scheduled through December.
- Commercial banks submit bids through the NBE's Central Securities Depository-Based Foreign Exchange Auction System between 10 a.m. and noon, with same-day settlement.
- The competitive bidding mechanism allows banks to propose their own exchange rate offers, replacing the previous administratively fixed rate system.
- Ethiopia transitioned to a market-based foreign exchange regime on 29 July 2024 as part of broader economic reforms supported by the IMF.
- An August auction of $125 million attracted bids totaling $470.17 million at a weighted average exchange rate of 161.7994 birr per US dollar, demonstrating strong demand.
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