Second NBE $500 Million FX Auction Undersubscribed, Signaling Easing Dollar Demand

As reported by Birr Metrics

Summary

• The National Bank of Ethiopia held its second $500 million special foreign exchange auction on February 21, 2026. Thirty commercial banks participated, but total bids fell short of the available amount by $44.71 million. The NBE allotted $455.29 million.
• The undersubscription was notable. Since the July 2024 float, nearly every NBE auction had been oversubscribed, reflecting persistent dollar demand. Analysts described the result as a signal that the era of chronic forex shortages is beginning to shift toward a more liquid market environment.
• Combined, the two January and February auctions disbursed close to $1 billion in the first two months of 2026. This pace significantly exceeded the $780 million sold throughout all of 2025.
• For BirrValue users, undersubscribed auctions are a positive sign. They indicate that banks have more FX available relative to demand, which supports tighter spreads and better conversion rates for customers. Check rates across CBE, Awash, Dashen, and other banks on [BirrValue](/banks) before converting.