Bankers are expressing frustration over the lack of transparency in the foreign exchange (forex) auctions regularly conducted by the National Bank of Ethiopia (NBE).
They argue that the procedures and results of these auctions are not clearly disclosed, leaving them uninformed.
“We were only informed verbally that our bid was unsuccessful and were instructed to collect the funds we offered to buy forex,” an anonymous banker told Capital.
An international banking and development (IBD) expert at a private bank explained that while his bank submits its bid rate via email, as directed by the NBE, the bidding process itself remains unclear.
“We have no information about how the bidding works,” he complained.
“We do not even know who opens our emails or whether our bid details are shared with others.”
Another banker shared that his bank was disqualified because its offer was below the average rate, while a different IBD expert revealed that his bank’s bid was rejected for being slightly above the average rate in the third auction held on April 1.
Bankers have also criticized the NBE’s method of announcing auction results, arguing that it lacks sufficient detail.
“For example, after the April 1 auction, the NBE only disclosed the average rate and the number of banks that secured forex,” one expert noted. “The announcement did not include the total number of participating banks or a comprehensive list of winners and losers.”
They urged the central bank to conduct the auctions more transparently, with clear disclosures on all outcomes.
The NBE has been conducting forex auctions since last July as part of broader economic reforms. The latest auction, held on April 17, was the fourth of its kind and the second under the new biweekly system.
In this round, the NBE offered USD 70 million, with 26 banks securing allocations at an average rate of 131.495 birr per dollar—a slight decrease of 21 cents compared to the previous auction.
Two weeks earlier, the third auction saw USD 50 million distributed among 12 banks at a weighted average rate of 131.71 birr per dollar.
Since the NBE introduced these auctions—alongside other measures, such as forex disbursement for clients at the Commercial Bank of Ethiopia—exchange rate speculation has significantly declined.
According to sector experts, the parallel market has also experienced a sharp drop, indicating growing stability in Ethiopia’s forex market.
However, bankers continue to call for greater transparency to ensure fairness and confidence in the auction system.
