Ethiopia’s central bank is set to inject an unprecedented US$500 million into the foreign exchange market, marking the largest single FX auction in the country’s history and signaling a decisive shift toward liquidity support for growth, trade, and macro-stability.
In a notice issued on Monday, the National Bank of Ethiopia (NBE) announced that it will hold a special foreign exchange auction on Tuesday, January 27, 2026, explicitly framed as a monetary policy operation. Commercial banks have been invited to submit bids between 10:00 a.m. and 12:00 noon, with results to be announced at 3:00 p.m. and settlement completed the same day.
A Step-Change in Scale
The US$500 million allocation represents a significant escalation from previous FX auctions, which were typically far smaller and more targeted. The move underscores the central bank’s growing willingness to use market-based tools to address foreign currency shortages, support critical imports, and stabilize expectations in the banking system.
Market analysts describe the auction as a strong confidence signal to businesses, investors, and development partners at a time when Ethiopia is pursuing accelerated economic reforms, including foreign exchange liberalization, banking sector modernization, and private-sector-led growth.
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