ADDIS ABABA — The National Bank of Ethiopia (NBE) has successfully concluded a Special Foreign Exchange Auction today, with a weighted average rate of 107.9 Birr per USD, involving participation from 27 banks.

According to Ethiopian News Agency, the auction’s outcomes will be incorporated into the Indicative Daily Exchange Rate that will be published tomorrow, August 8, 2024. This follows the central bank’s routine practice of adjusting exchange rates based on daily foreign exchange market activities. NBE Governor Mamo Mihretu expressed satisfaction with the results, highlighting the significant reduction in the disparity between official bank exchange rates and those of the parallel market, noting this as a key objective of recent macroeconomic reforms.

Governor Mihretu remarked on the reforms’ effectiveness in encouraging most foreign exchange transactions to move to the banking system, aiding both exporters and various enterprises in accessing foreign currency more reliably. He also noted the positive trend in the volume of transactions and the increasing number of banks that are now actively facilitating foreign exchange for their clients by clearing previous import backlogs and accepting new requests.

The NBE anticipates that this trend will continue, with more banks expected to engage at increasing transaction volumes in the upcoming weeks, thereby enhancing the overall stability and functionality of Ethiopia’s foreign exchange market.