The National Bank of Ethiopia (NBE) has announced a Special Foreign Exchange Auction scheduled for February 25, 2025, with USD 60 million available for bidding by all banks.
The auction follows Ethiopia’s macroeconomic reform program, launched in July 2024, which has significantly improved the country’s balance of payments due to rising exports, remittances, and capital inflows. Notably, record-high gold deliveries to the central bank have strengthened foreign exchange reserves beyond initial expectations.
While these inflows are positive, the NBE cautioned against excessive monetary growth and inflation risks. To maintain its prudent monetary stance and improve FX market liquidity, the central bank has decided to release a portion of its higher-than-expected reserves to the banking sector.
The NBE stated that it would monitor market conditions and may conduct additional forex sales if necessary to ensure price and external stability.
Source: Ethiopian News Agency
