The National Bank of Ethiopia (NBE) has launched the country’s first Automated Interbank Foreign Exchange Trading Platform, marking a major step in Ethiopia’s ongoing macroeconomic reform and financial sector modernization agenda.
The new market is being operationalized through the Ethiopian Securities Exchange (ESX) automated trading platform and is designed to establish a more transparent and competitive environment for foreign exchange transactions among commercial banks. Under the new system, interbank foreign exchange rates are expected to be determined more directly by real-time supply and demand, a shift aimed at improving market efficiency and strengthening confidence in price formation.
A central feature of the platform is market-based price discovery. Interbank foreign exchange transactions will now be conducted through real-time competitive bidding, increasing transparency and supporting a more accurate assessment of wholesale secondary market conditions. The NBE says the approach will help create more reliable benchmarks for market pricing.
The new interbank FX framework is also supported by a stronger regulatory structure to promote institutional soundness and market integrity. Operations will be governed by the market-based exchange regime established under Foreign Exchange Directive No. FXD/01/2024, alongside the Foreign Exchange Exposure Limits of Banks Directive No. SBB/96/2025. Participating institutions will also be required to comply with NBE’s Foreign Exchange Market Guidelines and the FX Market Code of Conduct, which align with global benchmarks.
The ESX platform will provide a dedicated FX market segment, enabling transparent pricing, real-time execution, and equal visibility into market depth for all commercial banks. The system also supports market price aggregation and supervisory oversight by the central bank.
NBE indicated that the initiative is the result of coordinated technical work by the NBE and ESX teams and is intended to improve liquidity allocation across the banking system, strengthen market discipline, and contribute to a more resilient financial ecosystem.
Source: National Bank of Ethiopia
