Ethiopia's currency strengthened in the latest foreign exchange auction conducted by the National Bank of Ethiopia, with the weighted average exchange rate for successful bids declining to 159.70 birr per US dollar on October 27, 2026, compared with 160.10 birr two weeks earlier. The 31st forex auction attracted total bids of USD 150.83 million against the USD 140 million allocated by the central bank, leaving demand USD 10.83 million above available supply, according to the NBE's announcement.
The rate movement reflected a shift in pricing among banks that successfully secured foreign currency. The marginal exchange rate, or cut-off rate, stood at 158.18 birr per dollar, marginally higher than the previous round's 158.17 birr. The highest bid rate reached 160.99 birr per dollar, while the lowest bid rate increased significantly to 158.18 birr from 153 birr recorded in the October 13 auction.
Participation in the auction expanded, with 30 commercial banks submitting bids compared with 29 previously. Of these, 28 banks secured foreign currency, up from 26 successful participants in the earlier round. Total bids declined slightly from USD 152.09 million in the previous auction to USD 150.83 million, a decrease of USD 1.26 million. The NBE maintained its allocation at USD 140 million in both auctions, while the excess of bids over available foreign currency narrowed from USD 12.09 million to USD 10.83 million.
The decline in the weighted average rate by 0.4058 birr per dollar indicates a change in market conditions, though the NBE cautioned that the results from a single auction alone do not establish a broader trend in the foreign exchange market. Continued demand exceeding supply suggests ongoing pressure on available foreign currency.