Addis Ababa, August 7, 2024 (FBC) – The National Bank of Ethiopia (NBE) has announced the conclusion of the Special Foreign Exchange Auction with a weighted average rate of Birr 107.9 per a USD.
The nation’s central bank held a Special Foreign Exchange Auction today August 7. 2024.
In that regard, the Special FX Auction saw the participation of 27 banks, NBE said in an official statement.
The weighted average rate of all successful bids was Birr 107.9 per US Dollar. Per NBE’s daily practice of updating exchange rates based on FX market activity in the banking system, transactions conducted under today’s auction will be reflected in the Indicative Daily Exchange Rate posted tomorrow, August 8, 2024.
NBE Governor Mamo Mihretu stated during the auction that the central bank is pleased to see a substantial narrowing of the gap between bank exchange rates and parallel market rates over the past week, as well as meaningful progress towards exchange rate stability. “This is precisely what our macroeconomic reforms intended to achieve—namely to ensure that that most FX transaction activity can shift to the banking system, thereby helping both the exporters bringing in foreign exchange as well as the many companies and entrepreneurs seeking foreign exchange,” he asserted.
The Governor also welcomed the encouraging growth seen in the volume of FX transaction and noted: “We are also pleased to see a growing number of banks making foreign exchange available to their customers by approving past import requests and accepting new import requests: we anticipate and indeed expect more banks will follow this trend over the coming weeks and that they will do so with increasingly larger FX volumes.”