The National Bank of Ethiopia (NBE) has released the results for its foreign exchange auctions held throughout August 2026, pointing to a notable contraction in commercial bank participation toward the end of the month.
The downward trend in lender engagement is clearly visible across the central bank’s periodic trading sessions. At the start of the month, Foreign Exchange Auction No. 25 on August 12, 2026, recorded robust interest, drawing 28 participating banks vying for a USD 125 million allotment. Out of that pool, nine banks successfully secured funds, with total bids climbing to USD 470.17 million against a marginal cut-off rate of 161.0050 Birr/USD.
A subsequent Special Foreign Exchange Auction on August 20, 2026, injected a substantial USD 500 million into the financial system. This special session sustained high market engagement, recording 22 participating banks—21 of which were successful—with total bids reaching USD 710.14 million and a marginal rate of 160.2021 Birr/USD.
However, market dynamics shifted drastically by the close of the month. Auction No. 27, conducted on August 26, 2026, saw total participation plunge to just five banks. Out of these institutions, only two emerged as successful participants to claim portions of the USD 125 million allotted amount. Total bids dropped sharply to USD 170.51 million, while the marginal and weighted average rates settled slightly lower at 160.2070 Birr/USD.
