馃嚜馃嚬EthiopiaEast Africa
National Bank of Ethiopia postpones FX auction due to technical issues
via The Reporter Ethiopia5 min read
The National Bank of Ethiopia NBE has postponed its latest foreign-exchange auction, citing unforeseen technical issues. The NBE had previously announced on May 27 that it would conduct two foreign-exchange auctions of USD 100 million each during the fourth quarter of the fiscal year. This amount represents a significant reduction from the previous auction, which offered USD 500 million. The next auction, valued at USD 100 million, was scheduled for June 24, 2026. Demand for foreign currency remains high, with commercial banks submitting bids totaling approximately USD 1 billion in the previous auction, double the amount offered by the central bank, as the Birr continues to weaken against the US Dollar. In that auction, the weighted average exchange rate for successful bids was 159.98 Birr per dollar, with the highest successful bid at 160.90 Birr per dollar and the lowest at 157.30 Birr. Fourteen of the 30 participating commercial banks secured foreign-currency allocations.
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This summary was AI-generated from a story originally published by The Reporter Ethiopia.
The National Bank of Ethiopia NBE has reconfirmed its prohibition on the use, trading, and transfer of virtual assets, including cryptocurrencies, unless explicitly authorized by the NBE. The central bank issued a public notice defining virtual assets as digital representations of value that can be electronically traded, transferred, exchanged, or used for payments, investment, or similar purposes. The ban covers the purchase, sale, exchange, transfer, trading, settlement, and facilitation of transactions involving these assets without specific approval under Ethiopia's legal framework. The NBE clarified that the prohibition extends beyond just cryptocurrencies to all virtual assets. Prohibited activities include exchanging virtual assets for fiat currencies or other virtual assets, transferring them, providing custody or administrative services, and offering financial services related to their issuance or sale. The NBE warned the public against engaging in such transactions due to legal and financial risks, including fraud, scams, cyberattacks, market manipulation, and significant financial losses. This statement reiterates existing legal restrictions and does not announce new regulations or enforcement measures.
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