The National Bank of Ethiopia (NBE) said it will conduct a special foreign exchange auction on Aug. 7. The Ethiopian central bank envisions similar auctions in the coming weeks, depending on market conditions. The NBE said banks keen on participating must submit their bids on the date of the sale. According to the Ethiopian apex bank, successful bidders will be sold U.S. dollars at the price they offered. However, banks will only be provided with a maximum of 20% of the foreign exchange made available at the auction. The central bank’s move to auction foreign currency came just over a week after it switched from a managed exchange rate to a freely floating one.
Ethiopia Announces Launch of Forex Auction Sale Days After Birr Float
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