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Economy

NBE Increases Quarterly Foreign Exchange Allocation to $840 Million

BirrMetrics · 3 hours ago · Read the Full Story on BirrMetrics
NBE Increases Quarterly Foreign Exchange Allocation to $840 Million
AI SUMMARY

The National Bank of Ethiopia has increased its regular quarterly foreign exchange allocation by 68 percent to 840 million US dollars for the second quarter of the 2026/27 fiscal year.

  • The National Bank of Ethiopia (NBE) will offer 140 million US dollars to commercial banks on Tuesday, October 13.
  • The transaction launches an expanded foreign exchange auction programme supplying up to 840 million US dollars during the second quarter of the 2026/27 fiscal year.
  • Commercial banks submit bids through the CSD-based foreign exchange auction system between 10:00 a.m. and noon, with results announced at 3:00 p.m. and same-day settlement.
  • The auction is the central bank's 30th foreign exchange sale and the first of six scheduled transactions between October and December.
  • The NBE increased its regular quarterly allocation by 68 percent, rising from 500 million US dollars in the first quarter to 840 million US dollars in the second quarter.
  • Each auction in the new quarter will offer 140 million US dollars, up from 125 million US dollars in the previous quarter, while scheduled auctions increased from four to six.
  • Remaining auctions are scheduled for October 27, November 10, November 24, December 8, and December 22.
  • During the first auction of the fiscal year on August 12, banks submitted bids totalling 470.17 million US dollars against a 125 million US dollar allocation.
  • Demand declined in September, with the September 23 auction attracting 123.49 million US dollars in bids and leaving approximately 1.51 million US dollars unsubscribed across 27 participating banks.
  • The central bank has not publicly specified why it increased the size and frequency of regular auctions following the September decline in demand.
  • The programme forms part of the foreign exchange market reforms introduced in July 2024 to transition to a market-based framework.
  • The reform programme is supported by the International Monetary Fund under its Extended Credit Facility.
Read the Full Story on BirrMetrics
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