National Bank of Ethiopia Announces Special $500 Million Foreign Exchange Auction

The National Bank of Ethiopia has announced a special $500 million foreign exchange auction scheduled for Tuesday, May 19, 2026, as authorities continue efforts to improve foreign currency liquidity within Ethiopia’s banking system.

According to the central bank, interested commercial banks are invited to submit bids through the official auction process during a designated submission window between 10:00 AM and 12:00 noon.

The results of the auction are expected to be announced at 3:00 PM, with settlement scheduled for the end of the same day.

Part of Ethiopia’s Ongoing Forex Reforms

The auction comes amid Ethiopia’s broader foreign exchange market reforms following the transition toward a more market-based forex regime introduced in 2024.

Since the reform, policymakers have increasingly relied on auction mechanisms and market-oriented allocation systems to improve foreign currency distribution, narrow parallel market distortions, and support external sector stability.

The latest auction is also expected to help commercial banks manage rising foreign currency demand linked to imports, fuel purchases, industrial inputs, and external trade obligations.

Forex Liquidity Remains a Key Economic Focus

Foreign currency availability remains one of the most closely watched issues in Ethiopia’s economy as businesses continue adjusting to exchange-rate liberalization, import pressures, and global commodity price volatility.

Authorities have repeatedly stated that improving forex market efficiency and boosting reserves remain central priorities under Ethiopia’s ongoing macroeconomic reform program supported by the IMF and other international financial institutions.

The size of the latest auction — one of the larger special allocations announced recently — signals continued efforts by the central bank to stabilize liquidity conditions in the formal banking market.