National Bank of Ethiopia (NBE) has announced to auction dollars on Wednesday. Banks can participate in this special foreign exchange auction. The banks can offer bids to buy dollars.
The extra ordinary auction has been announced at a time when the US dollar is standing firm and birr is losing value against US dollar. Birr lost around 75% of its value against US dollar in the last one week. The depreciation in the value of birr happened as a result of new macro economic reforms introduced by the Ethiopian government more than a week ago. Liberalization of foreign exchange market is part of this reforms package.
Since July 29, private banks have been buying and selling dollars. The auction will provide an opportunity for them to buy dollars from NBE. It remains to be seen how many dollars will be offered for auction by the National Bank.
“Interested banks are invited to submit their bids to the Foreign Exchange Monitoring and Reserve Management Directorate (FEMRMD) at the National Bank of Ethiopia between 10 AM and 12 Noon on August 7, 2024. The submission of auction bids shall include: (1) the volume of US dollars being requested, and (2) the offer price, expressed as Birr per USD, at which a bank is willing to purchase the availed US dollars. Bids shall be sent to the following email ([email protected]) by a duly authorized bank official,” the NBE said in a statement released on Tuesday.
“Successful banks will be sold US dollars at the bid price they have offered and no bank will be provided more than 20 percent of the total funds made available at the auction. Banks are required to settle their purchase on the same day as the auction date. The weighted average bid price of all successful bids will be announced by 3 PM on August 7, 2024,” the bank further said.
The National Bank of Ethiopia (NBE) announced that it could conduct such Special Foreign Exchange additional foreign exchange auctions over the coming weeks too.
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Is this gona work
I am afraid its going to get worse.
Unless reconsifrted due time or fix both the selling as well as nd buying rate, things would get much worest.
the government, in this sence, the national bank of Ethiopia, do have the right to intervine the unapproprate market where by the DD & SS GAP TOO HUGE TO CLOSE.
I Am vere hengry wan bread ta’in yadaa hin taane irratti hin dhagahuu
I hope this is going to work, but the NBE seems do not have tools the Banks. Most of the bankers are corrupted. Peace and stability should has to establish before the auction.
Sending money.
Ethiopia life very difficult.
5000000.send me on this number.account.1000080242291. Commercial.bank of Ethiopia
thanks