Ethiopia has officially launched its first Automated Interbank Foreign Exchange Trading Platform, a landmark step in modernizing the country’s financial markets and strengthening transparency in the foreign exchange (FX) sector.
The platform, operated through the Ethiopian Securities Exchange (ESX) Automated Trading Platform, allows commercial banks to trade foreign currency via real-time competitive bidding under strict oversight by the National Bank of Ethiopia (NBE).
Speaking at the launch, Eyob Tekalign, Governor of the NBE, described the move as a “significant step in modernizing our foreign exchange market infrastructure.” he said,
“The Interbank FX Automated Trading Platform provides a transparent, efficient, and rules-based environment for all market participants. Its adoption will help strengthen market discipline, improve price discovery, and support the broader financial sector reform agenda.”
The new interbank FX market introduces market-based price discovery, enabling transactions to reflect real-time supply and demand dynamics.
According to NBE, this transparency will allow for a more accurate assessment of the wholesale secondary FX market, providing reliable benchmarks for market pricing.
The platform also addresses longstanding challenges of information asymmetry by giving all participating banks equal visibility into market depth and trading activity.
The market operates under a comprehensive regulatory framework designed to ensure institutional soundness and integrity.
This framework is anchored on the Foreign Exchange Directive No. FXD/01/2024 and the Foreign Exchange Exposure Limits of Banks Directive No. SBB/96/2025, alongside NBE’s Foreign Exchange Market Guidelines and FX Market Code of Conduct, all aligned with global best practices.
NBE will enforce compliance through rigorous supervisory oversight to ensure orderly, transparent market operations.
The adoption of the automated platform is expected to enhance liquidity management within the banking system, strengthen market discipline, and improve the efficient allocation of foreign currency resources. It also supports the broader macroeconomic reform agenda by contributing to a more resilient financial ecosystem.
“The successful delivery of this initiative reflects the strong policy direction, technical leadership, coordination, and sustained efforts of the NBE team, as well as the ESX team in adapting existing market infrastructure to support the interbank FX market,” NBE said in a statement.
The launch represents a decisive step toward creating a competitive, transparent, and technology-driven foreign exchange market in Ethiopia, signaling the country’s continued commitment to financial sector modernization.
This development positions Ethiopia among the growing number of countries implementing automated interbank FX trading, enhancing transparency, efficiency, and market confidence while laying the foundation for a stronger, more disciplined financial system.
