Opinion

Ethiopia’s biweekly FX auctions have become a rare anchor in a volatile currency market. The August 5 auction showed how timely injections of liquidity can calm both official and parallel rates. But narrowing the stubborn gap requires more than consistency it calls for scaled-up auctions, stronger remittance incentives, and a united push from banks and government. Done right, this approach could shift hard currency back to official channels, rebuild reserves, and gradually erode the parallel market’s grip.