NBE Conducts Record $500 Million Special FX Auction to Signal Market Confidence

As reported by Addis Insight

Summary

• The National Bank of Ethiopia conducted a $500 million special foreign exchange auction on January 27, 2026. It was the largest single FX sale since the market-based exchange rate regime launched in July 2024. Thirty-one commercial banks submitted bids totaling $592 million at a weighted average exchange rate of 154.8 birr per dollar. Twenty-five banks received allocations.
• The auction came during a period of increased FX supply. Ethiopia's export earnings exceeded $5 billion in the first half of the 2025/26 fiscal year, surpassing the government's target by 20%. Combined with remittance inflows and external financing, the central bank's reserve position strengthened enough to support larger interventions.
• For BirrValue users, large NBE auctions increase the amount of foreign currency flowing through official banking channels. This supports competitive pricing among banks and helps narrow the gap between official and parallel market rates. Compare bank rates on [BirrValue](/banks) after major auctions, as pricing often adjusts within 24 to 48 hours.