Ethiopia's foreign exchange auction recorded a sharp increase in demand in October, with banks bidding for more dollars than the central bank offered. The National Bank of Ethiopia allocated 140 million US dollars at its 30th forex auction on October 13, receiving bids totalling 152.09 million dollars, the central bank said. This marked a reversal from September's auction, when demand had fallen short of supply.
The October allocation was 15 million dollars higher than September's, a 12 percent increase, while total bids rose by 28.60 million dollars. Twenty-nine banks participated in the latest auction, with 26 receiving foreign exchange allocations, compared with 27 banks in September, all of which were allocated funds.
The marginal exchange rate, which reflects the point at which weaker bids are rejected, reached 158.1724 birr per dollar in October, up from 158.0715 birr in September, the NBE reported. The weighted average rate of successful bids was 160.1072 birr per dollar, slightly better than the 160.2297 birr in the previous month. The highest bid in October was 160.9878 birr per dollar, while the lowest was 153 birr.