Many scholars are pushing the Ethiopian government to help in the establishment of well organized financial market. But most of the recommendations focus on the importance of having capital market. There are few studies that focus on the already existing money markets in Ethiopia. This paper will cast light on the status of the existing money market in Ethiopia. The paper has the following importance: First, the paper can be used for academic purpose at university. Second, it can also be used by managers, policy makers and concerned bodies at NBE and MOFED in their decision making, policy formulation and further improvement of the auction process. Third, the research work may also contribute a lot to the few existing literature on the subject. Finally, the study might initiate others to make further research on the subject matter. Therefore, this is a work that all concerned bodies need to read.