NBE Drops $500 Million Into the Market in a Single Day, Banks Scramble to Bid

As reported by Addis Insight

Summary

• The National Bank of Ethiopia announced a special foreign exchange auction on May 18, 2026, offering $500 million for bidding by commercial banks. The auction ran on a compressed, same-day timeline, with settlement at the end of day on May 19, 2026. The NBE cited a higher-than-expected foreign exchange position as the reason it could release the funds.
• The special auction is part of the NBE's ongoing series of bi-weekly foreign exchange auctions, for which it had previously set aside about $520 million. These auctions are a core tool of Ethiopia's market-based FX regime, which began in July 2024. By selling dollars to banks at market-determined rates, the NBE aims to channel supply into the formal banking system and narrow the gap with the parallel market.
• For BirrValue users, large FX auctions increase the supply of dollars that banks can sell to customers. When banks have more foreign currency, they can better meet demand for imports, travel, and other needs, which supports more stable rates. Compare bank rates on [BirrValue](/banks) and check [Send Money](/send-money) to find the best deal.