Ethiopia’s central bank sold $100 million in a Tuesday auction, drawing bids of $236 million and pushing cumulative sales this year to $2.02 billion.

The move follows a previous $500 million auction that attracted twice the bid volume, driven by pent‑up demand from agriculture and petroleum sectors. The birr slid to about 185 per dollar, a 14% discount to the official rate of 159.

High dollar demand has pressured the currency, keeping the parallel‑market premium steep. IMF data shows foreign‑exchange reserves climbing to $5.6 billion. Ethiopia’s intervention mirrors actions in Angola, Mauritius and Kenya, aiming to curb volatility amid Middle‑East‑driven inflation.

These sales demonstrate Ethiopia’s resolve to tighten the foreign‑exchange market and support the birr, tightening the gap between official and parallel rates while bolstering reserves.