{
  "id": 2094331,
  "title": "Ethiopia Birr Hits Record Low as Central Bank Sells US$500 Million in One Day",
  "url": "https://urgent.news/2026/08/20/ethiopia-birr-hits-record-low-as-central-bank-sells-us-500-million-in",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-20T07:15:54.000Z",
  "source": {
    "name": "The Rio Times",
    "slug": "the-rio-times",
    "url": "https://www.riotimesonline.com/ethiopia-birr-record-low-special-auction-2026/"
  },
  "original_language": "en",
  "account": "The Ethiopian birr hit a record-low exchange rate on 20 August after the central bank sold an additional $500 million in one day, according to Bloomberg. This move brought the currency's value to near 162 per dollar, marking the weakest point in the past year and the worst performer among the 23 African currencies tracked by Bloomberg over a twelve-month period.\n\nThe National Bank of Ethiopia had planned a series of four auctions, each selling $125 million, throughout August. However, the single-day sale on 20 August fulfilled the entire quarterly allocation of $500 million. The bank had previously allocated $2.2 billion to defend the currency this year, and this unscheduled sale is the latest in a series of measures to stabilize the birr.\n\nThe auctions work by setting a fixed pot of dollars, and commercial banks bid for them at a specified birr price. The highest bidders receive the dollars until the pot is exhausted. On 12 August, banks bid an average of $470.17 million against the $125 million allocation, indicating a significant interest in the currency.\n\nThe marginal rate of exchange rose from 157.00 to 161.0050 birr per dollar, while the weighted average of successful bids moved from 157.00 to 161.7994. This demonstrates the market's demand exceeding the supply, leading to an oversubscribed auction and unmet demand seeking alternative channels.\n\nEthiopia floated its currency, the birr, in July 2024 as part of a reform program backed by the International Monetary Fund (IMF). However, the central bank's efforts to stabilize the currency have been challenging, with the birr falling by about 3.2% to near 162 per dollar. The high import bill, driven by rising global oil prices due to the Iran conflict, has further strained Ethiopia's hard currency reserves.\n\nThe IMF has provided support, with a total payout of about $2.65 billion under the program, but the country is still facing significant challenges. The gap between the official exchange rate and the street price in Addis Ababa, which Bloomberg estimates at around 180 birr per dollar, highlights the inefficiency of the market clearing process. This wide discrepancy indicates that the market has not fully adjusted to the new float, leaving room for potential improvement in the reform's success.",
  "summary": "The National Bank of Ethiopia called an unscheduled US$500 million sale for 20 August, matching its entire planned allocation for the quarter in a single day. The post Ethiopia Birr Hits Record Low as Central Bank Sells US$500 Million in One Day appeared first on The Rio Times .",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}