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European plaice prices see drop across the board at Pefa auctions The prices for gutted, iced European plaice from Dutch vessels fell across all sizes in week 30 of 2024 (July 22-28), according to data provided by the Pefa European auctions. Prices dropped to €2.24 per kilogram for the 27-31cm size (the largest category by volume), as did prices for 31-35cm, 35-41cm and 41-80cm to €2.59/kg, €5.20/kg and €7.70/kg, as the chart below, available on Undercurrent News' prices portal, shows. Click below to read the full story from María Feijóo. Undercurrent News #flatfish #prices

The Board of Peterhead Port Authority (PPA) has approved the introduction of an Electronic Auction within the fish market. https://t.co/7jJicWUt12 https://t.co/WUhyVabMKU via Twitter https://lnkd.in/eUKsNskR

#Ethiopia #Economy Sticky rates.....an indication of higher than expected elasticity of demand. Expected considering the structural limits. What is interesting is the quote from the governor that premium with parallel market is reduced. The fact is the parallel market proved more resilient....because it pulled up the formal market than being dragged down by the policy intervention. Also expected for people with eyes on the fundamentals. Black market operators have gone in the shadows to avoid crackdown, but rates are between 135 and 145. So I would say the First FX bid by the fed achieved less in bringing down the rates.

The Median Listing Price gives you a good idea of the current market conditions by letting you know the price at the exact middle. Latrecia Countryman latrecia.countryman@c21jax.com (904) 236-1030

The Median Listing Price gives you a good idea of the current market conditions by letting you know the price at the exact middle. Latrecia Countryman latrecia.countryman@c21jax.com (904) 236-1030

The Median Listing Price gives you a good idea of the current market conditions by letting you know the price at the exact middle. Latrecia Countryman latrecia.countryman@c21jax.com (904) 236-1030

This will be the first and official FX buying rate determining the selling rate of each buying bank's selling rate thereafter. Interesting to see that the main source of USD is now the National Bank.

Why special foreign exchanges auction??? When a country like Ethiopia decides to float its currency, the birr, it essentially allows the exchange rate to be determined by the market forces of supply and demand, rather than a fixed peg or band. This shift can introduce significant volatility as the market adjusts to the new system. To manage this transition and ensure economic stability, Ethiopia might implement special foreign exchange sale auctions. These auctions serve as critical tools for the central bank to mitigate initial market turbulence and guide the economy through the adjustment period. **Analogy: Navigating a Boat in Uncharted Waters** Consider the floating of the currency as setting a boat adrift in uncharted waters. Initially, the waters are rough and unpredictable, as various economic forces interact with the birr, causing fluctuations in its value. To prevent the boat from capsizing, the central bank can use foreign exchange auctions as stabilizing buoys. **Historical Example: Nigeria in 2016** A relevant historical example is Nigeria's decision in 2016 to float its currency, the naira. Facing severe economic pressures from plummeting oil prices, Nigeria's initial move to a floating exchange rate resulted in significant volatility. The Central Bank of Nigeria (CBN) responded by organizing special foreign exchange sale auctions to stabilize the market. **Why Ethiopia Needs Special Forex Auctions:** 1. **Stabilization**: Similar to how buoys stabilize a boat, these auctions help stabilize the birr by ensuring a steady supply of foreign currency, thus preventing extreme fluctuations. 2. **Market Confidence**: Just as buoys provide assurance to a boat's passengers, regular and transparent forex auctions build confidence among businesses and investors. They signal that the central bank is actively managing the transition, fostering trust in the new floating exchange rate regime. 3. **Guidance**: Buoys guide the boat along a safe path. In the same vein, forex auctions offer guidance to the market by indicating the availability and pricing of foreign currency, aiding businesses in their financial planning. 4. **Preventing Panic**: Without buoys, a drifting boat could incite panic. Similarly, forex auctions prevent market panic by ensuring that essential foreign exchange needs, particularly for importers of critical goods, are met. 5. **Managing Supply and Demand**: Just as buoys control the boat’s drift, forex auctions allow the central bank to manage the supply and demand of foreign currency, ensuring a balanced and more predictable exchange rate environment. In the case of Ethiopia, the introduction of special foreign exchange sale auctions would be crucial to navigate the immediate challenges of a floating currency. These auctions would help stabilize the birr, build market confidence, and provide necessary guidance to ensure a smoother transition to a market-determined exchange rate.

The National Bank of Ethiopia's decision to sell US dollars through an auction system will have several impacts on the economy and financial sector: 1. Exchange Rate Stability: By allowing banks to bid for US dollars, the auction system can help align the official exchange rate with market conditions, potentially reducing the gap between the official and black market rates. 2.Inflationary Pressures: The devaluation of the Ethiopian birr, which often accompanies such auctions, can lead to higher prices for imported goods and services, contributing to inflation. 3.Foreign Exchange Accessibility: The auction system can improve access to foreign currency for businesses, reducing reliance on the black market and streamlining operations for companies that depend on imports. 4.Investor Confidence: The move towards a more transparent and market-driven foreign exchange system can boost investor confidence, signaling a commitment to economic reforms and potentially attracting foreign direct investment. 5.Short-Term Volatility: Initially, the shift to an auction system may cause exchange rate volatility as the market adjusts to the new mechanism. 6.Impact on Banks: Banks will need to strategize their bids carefully, as no single bank can acquire more than 20% of the total funds available. This could lead to more competitive and efficient allocation of foreign exchange resources. Overall, while the auction system aims to create a more efficient and transparent foreign exchange market, it will require careful management to mitigate inflationary pressures and short-term volatility.