The inaugural special foreign currency auction by the National Bank of Ethiopia (NBE) attracted 27 of the 31 commercial banks in the country with successful bids of 107.9 birr (weighted average) against the dollar. Tomorrow’s indicative exchange rate, a non-mandatory figure placed on the central website will be the reflective amount according to NBE’s statement.
Central bank governor Mamo Mihretu relayed his sense of joy in the early success in narrowing the gaps between the official and parallel exchange rates which are around 116 birr against the dollar.
“This is precisely what our macroeconomic reforms aimed to achieve,” the governor said.
He referred to how a significant portion of the foreign currency transaction could move to the banking system helping both exporters with their earnings and businesses with access.
Mamo also suggested that a growing number of banks have been making an increasing level of foreign currency available for their customers by approving past requests and accepting new ones.
The Birr has slid against the dollar by nearly 90pc in the week and a half since the seismic transformation that overhauled the country’s currency regime towards market-determined rates.
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