Wednesday, July 15, 2026

Birr Strengthens as NBE’s $500 Million Auction Eases Market Pressure

By our staff reporter

In a strategic effort to stabilize the foreign exchange market, the National Bank of Ethiopia (NBE) held a special auction on February 21, 2026, which led to a 1.21% appreciation of the birr against the US Dollar. The average selling price settled at 153.25 birr, marking a decline from the record highs observed in recent weeks.

Although the central bank offered an unprecedented $500 million in this special auction, total bids from commercial banks fell short of the available amount. The outcome has helped temper the strong demand for foreign currency and curb the recent price surges seen in the market.

A total of 30 banks took part in the auction, with aggregate demand reaching $455.3 million. This means only 91.1% of the $500 million offered by the NBE was purchased, leaving $44.71 million—equivalent to 8.9% of the total—unsold.

All 30 participating banks received the full amount of foreign currency they requested.

Hot this week

Production up, but the ‘cost’ variable weighs heavily

Production is up in 2021 for the Italian agricultural...

Luminos Fund’s catch-up education programs in Ethiopia recognized

The Luminos Fund has been named a top 10...

Well-planned cities essential for a resilient future in Africa concludes the World Urban Forum

The World Urban Forum (WUF) concluded today with a...

Private sector deemed key to unlocking AfCFTA potential

The private sector’s role is vital to fully unlock...

NBE lifts credit cap, raises policy rate

By Muluken Yewondwossen The National Bank of Ethiopia (NBE) has...

Why this energy shock is different

The Gulf ceasefire lasted barely three weeks. After Iranian...

The partnership that will shape Ethiopia’s future

Ethiopia is currently experiencing a moment of change. Its...

Role of ethics and technology in building efficient and trustworthy tax system

An effective tax system is the backbone of government...
spot_img

Related Articles

Popular Categories

spot_imgspot_img