Ethiopia's Gold Buying Rate Skyrockets Sixfold to Record High

The National Bank of Ethiopia (NBE) has significantly increased its buying rate for 24-karat gold, rising sixfold to Br23,776 per gram by August 2026. This marks a substantial increase from January 2024's rate of Br3,865 per gram.

The rise in the gold-buying rate is attributed to a combination of factors, including the global gold rally, depreciation of the Birr, and the central bank's effort to attract more domestically produced gold into official channels. NBE's international dollar price for gold increased by approximately 126 percent over the same period, while the exchange rate embedded in NBE's figures rose by about 173 percent.

The most visible structural break occurred around the foreign-exchange reform introduced in July 2024. The exchange-rate reform allowed NBE to offer a Birr price closer to the economic value of the gold, making it more attractive for producers and traders to sell gold through official channels.