Over the past week, the Brewed Buck has extended its persistent decline against the Green Buck. Between November 4 and 9, 2024, banks posted progressively higher exchange rates, manifesting mounting pressure on the currency during the unabated foreign exchange crunch and macroeconomic headwinds.

The six-day average buying rate for the Birr registered around 120.66 against the dollar, while the selling rate averaged 122.98 Br. Initial buying rates started near 119 Br at some banks, edging upward in almost uniform increments daily. The steady climb came from intensifying strain on importers, perhaps revealing market players' anticipation of further depreciation unless substantial interventions from the Central Bank in demonstrating firepower are materialised.

Oromia Cooperative Bank (Coop Bank) and Berhan Bank (BIB) led the surge, consistently posting the highest buying and selling rates last week. Forex managers at Coop Bank, in particular, exhibited an aggressive rate-setting approach, with their buying rate reaching 121.32 Br and selling rate climbing to 123.75 Br by November 8. Berhan Bank maintained comparably high rates, slightly trailing Coop Bank. The latter's rapid rate increases often outpaced daily adjustments by other banks. Its high-risk tolerance may reflect an aggressive market-capture strategy or an internal response to unique liquidity pressures.

These assertive positioning proved a willingness to absorb the risk of holding a depreciating asset, possibly to meet robust demand from dollar-seeking clients with limited alternatives in a competitive market.

The state-owned Commercial Bank of Ethiopia (CBE), which traditionally influences baseline exchange rates due to its dominance in the financial ecosystem, adopted a more conservative position. CBE's buying rate lingered around 119.2 Br, with a selling rate of 121.59 Br, making it one of the lower offers in the market. CBE executives' restrained approach may signal a strategy to stabilise rather than lead, moderating fluctuations within their extensive branch network.

Gadaa Bank, on the lead, setting rates a few weeks ago, emerged last week as a middle-ground player, posting rates close to the average without venturing into extremes. While Gadaa's rates aligned with the general upward trend, they fell short of the peaks set by Coop and Berhan Bank, signalling a more cautious or reactive approach than its competitors.