The Birr Looks Calm, But Banks Fight Over Dollars

May 31 , 2026.

The Birr (Brewed Buck) ended May’s final week quietly. It barely shifted against the dollar last week. Yet daily cash-rate told a more unsettled story about banks no longer speaking with one voice.

The average buying rate jumped from 155.50 Br on May 25 to 156.16 Br on May 30, while the average selling rate climbed from 158.57 Br to 159.18 Br. Although the average buying rate depreciated less than half a percentage point, the calm concealed wide gaps, sticky low quotes and banks bidding aggressively for scarce cash dollars.

By Saturday, Oromia Bank was buying a dollar at 162.73 Br, while Hijira Bank remained at 153.82 Br, a gap of 8.92 Br. On the sell side, Oromia Bank quoted 165.99 Br, compared with Hijira Bank’s 156.89 Br. For anyone selling 1,000 dollars, that gap meant nearly 8,916 Br more at Oromia Bank than at Hijira before bonuses. The gap between Oromia and the state-owned Commercial Bank of Ethiopia’s (CBE) posted buying rate would be more than 8,530 Br.

Oromia Bank was the clearest outlier for months. Its buying quote stayed between 162.74 Br and 162.82 Br all week, far above the others. Its selling quote, almost fixed at 165.99 Br, made it the costliest seller. This was a standing premium, not a late-week adjustment.

On May 30, Oromia Bank was 6.58 Br above the market’s average buying rate and 8.53 Br above CBE’s posting. The gap revealed a strategy to attract cash dollars, a different liquidity position.

The Central Bank’s reference rate moved separately, jumping from 157.93 Br a dollar on May 25 to 159.26 Br on May 26 and May 27, then eased to 158.73 Br on May 28 and 157.97 Br on May 29 and May 30. By the end, the Central Bank’s buying rate was 4.16 Br above Hijira Bank’s low, 3.77 Br above CBE’s posting and 1.82 Br above market average.

Wegagen Bank formed the second outlier last week, buying at a a fixed rate of of 159.62 Br for six days, with a selling rate of 162.81 Br. On Saturday, it topped its peers, posting 4.74 Br above Dashen, 4.68 Br above Awash, 4.60 Br above Abyssinia and 3.19 Br above Zemen.

The split matters because large private banks shape expectations. When they move together, the market reads consensu;t when they spli,t as they did last week, rates become liquidity statements.

Wegagen Bank held a premium, while Awash increased marginally from 154.87 Br to 154.94 Br. Dashen did not move, staying at 154.88 Br. Abyssinia briefly jumped to 157.27 Br on May 26 and May 27, then retreated to the 155 Br range. Zemen stayed near 156.43 Br.

However, CBE remained restrained, posting buying rates from 154.18 Br on May 25 to 154.2 Br on May 30. Its selling rate moved from 157.26 Br to 157.28 Br. On Saturday, the industrial average buying rate was 156.16 Br, 1.96 Br above CBE’s rate.

Selling rates followed the hierarchy, though buying quotes were more revealing because most banks kept a standard spread of about two percent.

Berhan Bank was the early exception. From May 25 to May 27, it posted a 3.28pc spread, with a buying rate of 156.52 Br and a selling rate of 161.65 Br. By May 28, it normalised the spread to two percent, raised buying to 158 Br, and reached 158.72 Br by May 30, behind Oromia and Wegagen bank, but above the Central Bank.

The Central Bank’s peak of 159.26 Br on May 26 and May 27 was above the levels of almost all commercial postings, except those of Oromia and Wegagen banks. It's easing to 157.97 Br came as the market average increased.

Abyssinia Bank’s two-day jump was another anomaly. It moved from 154.49 Br on May 25 to 157.27 Br on May 26 and May 27, before falling to 155 Br on May 28 and 155.02 Br on May 30.

By week’s end, the market split into blocs, with Oromia and Wegagen banks forming the premium-rate group. Berhan Bank joined the upper segment. The Central Bank was high relative to the market, volatile and with no spread.

Upper-middle banks included A,bay, without anternational, Global Bank Ethiopia, Hibret, Goh Betoch, Zemen and ZamZam, generally in the 156 Br to 158 Br range. Lower or sticky posters included CBE, Development Bank of Ethiopia (DBE), Gadaa, Amhara, Tsehay, and Hijira banks, as well as the Central Bank.

Nonetheless, the lowest rates barely moved. Hijira Bank stayed at 153.82 Br for buying and 156.89 Br for selling. Tsehay Bank was unchanged at 154.49 Br and 157.58 Br. Amhara Bank kept 154.51 Br and 157.6 Br. Gadaa Bank and DBE also did not move.

Others repriced in steps, including Abay Bank from 155.65 Br to 157.05 Br, Addis International from 155.85 Br to 157.52 Br, and ZamZam Bank from 155.88 Br to 157.15 Br. Tsedey Bank jumped to 156.5 Br on May 30, while Sinqqee Bank increased its rate to 155.38 Br on Saturday.

In a market visibly short of foreign exchange, the buying rate became the battle line, with banks needing dollars moving higher and others staying lower. For policymakers, this was a market still searching for a clearing price.

PUBLISHED ON May 31,2026 [ VOL 27 , NO 1361]