Saturday, May 9, 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.

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