ETHIOPIA · CURRENCY
Ethiopia’s currency, the birr, is holding near 160 to the US dollar in the central bank’s fortnightly auctions, where commercial banks bid for the dollars the bank sells. The National Bank of Ethiopia (NBE), the central bank, cleared its 27 October 2026 auction at a weighted average (winning bids weighted by size) of 159.70 birr per dollar, down from about 160.1 birr two weeks earlier.
For US readers and firms dealing with Ethiopia, that rate sets what a dollar buys there. Inflation, at 14.9% in September, remains well above the central bank’s single-digit goal.
Key Facts
- Auction The 27 October auction cleared at an average winning rate of 159.70 birr per US dollar.
- Before that The 13 October auction cleared at about 160.1 birr, so the birr firmed slightly.
- Policy rate The central bank held its benchmark interest rate at 16% on Tuesday 3 November 2026.
- Prices Annual inflation was 14.9% in September.
What the Central Bank Auction Showed
At an auction, banks bid for dollars that the central bank sells, and the weighted average is the average of the winning bids, weighted by size. On 27 October that average was 159.70 birr per dollar, according to results relayed in two independent local reports.
The previous auction, on 13 October, averaged about 160.1 birr. The move of roughly 0.4 birr is small, and one auction does not establish a trend.
A local account puts the weighted average of the 10 November auction at 159.71 birr, almost unchanged. We could not match that figure to the central bank’s own results, so it is reported, not confirmed.
Why the Auction Rate Is Not the Whole Story
The auction rate is what banks pay the central bank for dollars. The rate a bank quotes to a customer is separate, and each bank sets it on its own board.
We could not verify current customer quotes from the banks’ own boards, so we give none. Ethiopia floated the birr, meaning it let the market set its value, in July 2024, and our report on the birr’s record low has the earlier story.
What the Central Bank Said on 3 November
The NBE’s Monetary Policy Committee, its rate-setting panel, kept the policy rate, the bank’s benchmark interest rate, at 16%. It also kept the corridor, a band of 3 percentage points either side of that rate.
Our report on the rate decision has the detail. The committee said inflation had begun to ease from a supply-driven peak caused by shortages and higher import costs, with food inflation easing slightly to 14.8% and non-food inflation rising to 15.1%, both compared with June.
It said reserve money, the cash the bank puts into the system, grew 87.2% year on year in the July–September quarter, the first of the 2026/27 fiscal year. A major contributor was the bank’s gold operation, which increased its net foreign assets (foreign currency and gold holdings, after foreign debts) and injected local currency into the banking system.
Our story on the central bank’s fight with an oil shock explains the price side. The committee named coffee beans among the items pushing food prices up.
What It Means for Travellers and Traders
Dollar quotes can differ from bank to bank, so the birr amount a customer receives or pays depends on where the transaction happens. Anyone converting dollars to birr or back should treat the auction rate as a reference point, not a price on offer.
Businesses that import in dollars face the same split between the auction rate and bank boards. The latest Ethiopia coverage tracks how costs feed into prices.
What Is Not Known
It is not known whether the 10 November auction result is correct, or what customer quotes look like now. We have not seen a current bank-level quote that we can verify.
It is also unclear whether the narrow gap between recent auctions will last. The central bank’s own results notices were not readable to us, so the auction figures above rest on published results, not on the notices themselves.
Frequently Asked Questions
What was Ethiopia’s auction rate on 27 October?
The weighted average of successful bids was 159.70 birr per US dollar. The 13 October auction averaged about 160.1 birr.
Why can banks quote a different dollar price?
Each bank sets its own customer quote, separate from the central bank auction rate. We could not verify current bank quotes, so we give none.
What is Ethiopia’s policy rate?
The central bank kept it at 16% on 3 November 2026. It also kept a corridor of 3 percentage points either side.
How high is inflation in Ethiopia?
The central bank said annual inflation was 14.9% in September 2026. That is well above its single-digit goal.
Sources: National Bank of Ethiopia, Monetary Policy Committee Meeting No. 8 press release, 3 November 2026. Auction rates for 13 and 27 October 2026: central bank auction results, as relayed in two independent local reports that agree; the central bank’s own results notices were not readable to us.
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