The National Bank of Ethiopia’s second 500 million dollars special auction in less than a month concluded today, with the birr appreciating to a weighted average rate of 153.2503 per dollar. Total bids reached 455.29 million dollars, falling short of the full allotment for the first time in recent auction history. In the previous auction held last Saturday, all 30 participating banks received their full allotments despite a 44.71 million dollars undersubscription. The marginal cut-off rate was 152.79 Br per dollar, while the highest successful bid reached 154 Br. Three days before the current auction, a 70 million dollars regular auction cleared at 155.1223 Br per dollar, reflecting strong demand. The latest auction’s top successful bid of 154 Br per dollar shows a notable appreciation relative to the February 17 auction. Analysts say the undersubscription may indicate easing demand pressures or a strategic shift by banks in response to the central bank’s aggressive liquidity injections.

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