Two Years In: Ethiopia's FX Auctions Have Injected Dollars but Demand Still Runs Ahead

As reported by Capital Newspaper

Summary

• Ethiopia's foreign exchange auction system turned two in August 2026, offering a long record of how the birr has traded since the July 2024 shift to a more market-based exchange rate. The first auction, held on August 7, 2024, cleared at 107.90 birr per U.S. dollar. Regular auctions later settled around $70 million per round, while the National Bank of Ethiopia has repeatedly used $500 million special sales when pressure intensified.
• Capital Newspaper reported that the auctions have injected substantial foreign currency into commercial banks and improved transparency, but demand has frequently outpaced supply. The parallel-market premium has narrowed at times, although the move to a fully market-determined rate remains incomplete. The International Monetary Fund has noted that exchange-rate expectations have stayed broadly stable so far, but warned that prolonged conflict in the Middle East could worsen terms of trade and add pressure.
• For BirrValue users, auction outcomes influence the official rates banks can offer for dollars. When demand exceeds supply, the gap with informal markets can persist. Track bank quotes on [BirrValue](/banks) and compare remittance providers on [Send Money](/send-money) before you transfer.