Ethiopia's Central Bank Injects Billions as Birr Continues to Weaken Against US Dollar

Ethiopia's central bank has been injecting billions of dollars into its foreign exchange market in an effort to stabilize the country's currency, but the birr continues to weaken against the US dollar.

The National Bank of Ethiopia allocated $500 million for foreign exchange auctions during the first quarter of the 2026/27 fiscal year, with bids worth around $470.17 million submitted at the latest auction on August 12.

The weighted average exchange rate reached 161.80 birr per dollar, a depreciation of around 3.1% compared to late June. Despite interventions totaling over $2.2 billion this year, the birr remains under pressure and has weakened by around 3.2% this year.