The National Bank of Ethiopia (NBE) has announced that it will conduct its 21st foreign exchange auction on Tuesday, March 17, 2026, offering USD 70 million to commercial banks.
In a notice issued in Addis Ababa, the central bank said the auction is part of its ongoing series of bi‑weekly foreign exchange sales aimed at supporting price and external sector stability, while improving the availability of hard currency to the banking system. The NBE has in recent months adopted a calendar‑based auction schedule, publishing quarterly allocations to enhance transparency and predictability for market participants.
According to the announcement, interested banks are required to submit their bids on March 17 between 10:00 a.m. and 12:00 noon, with results to be communicated at 3:00 p.m. the same day and settlement due by close of business. The central bank has allocated USD 70 million for each of the bi‑weekly auctions scheduled in the third quarter of the 2025/26 fiscal year, including the March 17 session, bringing the total planned allocation for the quarter to USD 420 million.
The FX auction mechanism, introduced as part of Ethiopia’s broader foreign exchange market reforms since 2024, is designed to channel foreign currency to banks through competitive bidding, with clearing and weighted average rates determined by demand conditions. Market observers say the regular supply of foreign exchange through auctions is expected to help reduce volatility, support importers and exporters, and bolster confidence in the evolving FX market framework.
