The Ethiopian birr (ETB) is the official currency of Ethiopia. Its history reflects Ethiopia's economic and political evolution.

## Early Currency

Before the birr, Ethiopia used various forms of money including salt bars (amole), Maria Theresa thalers (silver coins), and copper coins. The thaler was widely used in trade across the Horn of Africa.

## Introduction of the Birr

The birr was first introduced in 1945, replacing the Ethiopian dollar. The name "birr" means "silver" in Amharic, reflecting the metal used in early coinage. Initially, the birr was pegged to the US dollar.

## Key Milestones

- **1945**: Birr introduced; 1 birr = 0.5 US dollar
- **1976**: Birr redenominated (old birr replaced at 2:1)
- **1990s**: Gradual liberalization of the foreign exchange regime
- **2010s–present**: Managed float; National Bank of Ethiopia sets reference rates

## The National Bank of Ethiopia

The National Bank of Ethiopia (NBE) is the central bank, established in 1963. It issues currency, sets monetary policy, regulates banks, and manages foreign exchange. The NBE's decisions on interest rates and reserve requirements affect the value and availability of the birr.

## Today

The birr remains the sole legal tender in Ethiopia. Banknotes come in denominations of 5, 10, 50, 100, and 200 birr. Coins are 1, 5, 10, 25, and 50 santim (100 santim = 1 birr). Exchange rates are published daily by commercial banks and can be compared on Birr Value.

History of the Ethiopian Birr

Opening a bank account in Ethiopia is straightforward if you have the required documents. Here's what you need to know.

## Requirements (General)

Most banks require:
- **Valid ID**: Ethiopian national ID (Kebele ID) or passport
- **Proof of address**: Utility bill, rental agreement, or Kebele residence letter
- **Minimum deposit**: Varies by bank and account type (often 100–500 birr for savings)
- **Two passport photos** (some banks)

## For Ethiopian Residents

1. Choose a bank (CBE, Awash, Abyssinia, and others—see our Banks page)
2. Visit a branch with your ID and proof of address
3. Fill out the account opening form
4. Make the initial deposit
5. Receive your passbook or debit card (processing time varies)

## For Diaspora / Non-Residents

Some banks offer diaspora accounts or foreign-currency accounts. Requirements may include:
- Valid passport
- Proof of residence abroad
- Reference letter from a bank in your country of residence
- Minimum deposit (often in USD or birr)

Contact the bank's international or diaspora desk for exact requirements.

## Account Types

- **Savings account**: Interest-bearing; suitable for individuals
- **Current account**: For businesses; check-writing and overdraft may be available
- **Fixed deposit**: Higher interest for locking funds for a set period

## Tips

- Bring original documents; copies may not be accepted
- Some branches are less crowded early in the morning
- Ask about mobile banking and internet banking when opening

How to Open a Bank Account in Ethiopia

Remittances are a major source of foreign exchange for Ethiopia. If you're sending money to family or friends, here's what to consider.

## Choosing a Service

Compare providers by:
- **Fees**: Fixed fees vs. percentage; first-transfer promotions
- **Exchange rate**: Mid-market rate vs. marked-up rate
- **Speed**: Minutes (cash pickup) to 1–3 days (bank transfer)
- **Delivery options**: Bank deposit, cash pickup, mobile wallet (TeleBirr, CBE Birr)

See our [Send Money to Ethiopia](/send-money) page for a ranked comparison.

## Delivery Options

1. **Bank deposit**: Money goes directly to the recipient's account (CBE, Awash, Abyssinia, etc.)
2. **Cash pickup**: Recipient collects at an agent (Western Union, Dahabshiil, etc.)
3. **Mobile wallet**: TeleBirr or CBE Birr—funds arrive on the recipient's phone

## Documents

Recipients may need ID to collect cash. For bank deposit, the sender needs the recipient's account number and bank name.

## Exchange Rate

The rate you get affects how much birr the recipient receives. Providers that use the mid-market rate (e.g., Wise) often give more birr per dollar, even if they charge a fee.

## Tips

- Compare total cost (fees + exchange rate margin), not just fees
- New customers often get waived fees on the first transfer
- Check if your bank has a partnership with an Ethiopian bank for lower fees

Guide to Sending Remittances to Ethiopia

The National Bank of Ethiopia (NBE) is responsible for monetary policy. Its decisions affect inflation, interest rates, and the value of the birr.

## The National Bank of Ethiopia

The NBE was established in 1963. Its main functions include:
- Issuing currency
- Setting monetary policy (interest rates, reserve requirements)
- Regulating commercial banks
- Managing foreign exchange reserves
- Acting as banker to the government

## Monetary Policy Tools

1. **Policy rate**: The NBE sets a benchmark interest rate that influences lending and deposit rates across banks.
2. **Reserve requirements**: Banks must hold a percentage of deposits at the NBE. Higher reserves reduce lending capacity.
3. **Open market operations**: Buying or selling government securities to inject or withdraw liquidity.
4. **Foreign exchange intervention**: The NBE may buy or sell foreign currency to influence the exchange rate.

## Impact on Exchange Rates

When the NBE raises interest rates, it can attract foreign capital and support the birr. When it loosens policy, the birr may weaken. The NBE also publishes a reference exchange rate; commercial banks trade within a band around it.

## Inflation

A key goal of monetary policy is price stability. High inflation erodes purchasing power. The NBE uses interest rates and money supply controls to keep inflation in check.

## Recent Reforms

Ethiopia has been gradually liberalizing its financial sector. Reforms may include more flexible exchange rates, interest rate liberalization, and opening the banking sector to foreign participation. Follow news and NBE announcements for updates.

How Monetary Policy Works in Ethiopia

Ethiopian currency comes in banknotes and coins. Knowing the denominations and security features helps you handle money safely and avoid counterfeits.

## Banknotes (Paper Currency)

Current birr banknotes are issued in:
- **5 birr** – Blue/green tones
- **10 birr** – Brown/orange
- **50 birr** – Purple/violet
- **100 birr** – Red
- **200 birr** – Blue (introduced in recent years)

Each note features Ethiopian historical figures, landmarks, or cultural symbols. The National Bank of Ethiopia (NBE) periodically updates designs and adds security features.

## Coins

Coins are used for smaller amounts:
- **1 birr** – Main circulating coin
- **50 santim** – Half birr
- **25 santim** – Quarter birr
- **10 santim**, **5 santim**, **1 santim** – Less commonly used

100 santim = 1 birr. Coins are useful for small purchases, public transport, and tips.

## Security Features

Genuine banknotes include:
- Watermarks
- Security threads
- Raised printing (intaglio)
- Color-shifting ink on higher denominations

If you receive a note that looks suspicious, compare it to a known genuine note or ask a bank to verify.

## Handling Currency

- Avoid torn or heavily damaged notes; some vendors may refuse them
- Coins can be scarce; keep small change when you receive it
- Exchange rates for foreign currency are set daily by banks—see Birr Value for comparisons

Ethiopian Banknotes and Coins: A Complete Guide

Ethiopia has specific rules for foreign exchange. Whether you're visiting, sending money, or doing business, here's what you need to know.

## Bringing Money In

- **Cash**: You may bring foreign currency (USD, EUR, etc.) into Ethiopia. Declare amounts above a certain threshold at customs if required.
- **No limit on birr**: You can bring birr in, but exporting large amounts of birr is restricted.

## Exchanging Currency

- **Authorized dealers**: Commercial banks and licensed forex bureaus can exchange currency.
- **Rates**: The National Bank of Ethiopia (NBE) sets a reference rate. Banks and bureaus trade within a band. Rates vary—compare on Birr Value.
- **Documentation**: For larger exchanges, you may need to show ID and explain the purpose (travel, business, etc.).

## Exporting Currency

- **Birr**: Export of birr is limited. Convert excess birr to foreign currency at a bank before leaving if possible.
- **Foreign currency**: You may take out what you brought in, subject to declaration rules. Funds from remittances or local earnings have different rules—check with your bank.

## For Diaspora and Businesses

- **Diaspora accounts**: Some banks offer accounts for non-residents with foreign currency options.
- **Import/export**: Businesses use formal banking channels for trade payments. The NBE and commercial banks facilitate this.
- **Remittances**: Sent through licensed providers (see our [remittance guide](/knowledge/articles/remittance-guide-ethiopia)).

## Staying Compliant

Regulations change. For the latest rules, consult the National Bank of Ethiopia or a licensed bank.

Foreign Exchange Regulations in Ethiopia

Mobile banking and digital payments are growing fast in Ethiopia. Here's an overview of the main options.

## TeleBirr

TeleBirr is Ethio Telecom's mobile money service. Users can:
- Store money in a mobile wallet
- Send money to other TeleBirr users
- Pay bills (utilities, taxes)
- Receive remittances from abroad (via partners like Kifiya, Safaricom)
- Make merchant payments

Registration requires a valid ID and phone number. TeleBirr has become one of the largest mobile money platforms in Ethiopia.

## CBE Birr

CBE Birr is the Commercial Bank of Ethiopia's mobile banking app. It offers:
- Account management
- Transfers between CBE accounts
- Bill payments
- Mobile top-up
- Integration with CBE's branch and ATM network

You need a CBE account to use CBE Birr.

## Bank Apps

Most commercial banks (Awash, Abyssinia, Dashen, etc.) offer mobile apps for:
- Balance checks
- Transfers
- Bill payments
- Card management

Features vary by bank. Check your bank's website or branch for details.

## Choosing a Service

- **TeleBirr**: No bank account needed; works with any Ethio Telecom SIM.
- **Bank apps**: Require an account; often more features for existing customers.
- **Interoperability**: Some services can link—e.g., moving funds between TeleBirr and bank accounts through agents or apps.

## Security Tips

- Use strong PINs and never share them
- Verify recipient details before sending
- Be cautious of phishing and fraud

Mobile Banking and Digital Payments in Ethiopia

The birr's value against the US dollar and other currencies changes over time. Understanding the main drivers helps you make better financial decisions.

## Supply and Demand

- **Demand for birr**: When foreigners invest, tourists spend, or diaspora sends remittances, demand for birr can rise, supporting its value.
- **Demand for foreign currency**: Importers, travelers, and businesses needing USD or EUR create demand for foreign currency. If demand exceeds supply, the birr may weaken.

## Remittances

Remittances are a major source of foreign exchange for Ethiopia. When diaspora sends more money home, it increases the supply of USD/EUR in the market, which can strengthen the birr or ease pressure on it.

## Trade Balance

- **Imports vs. exports**: Ethiopia imports fuel, machinery, and consumer goods. Exports include coffee, flowers, and garments. A trade deficit (more imports than exports) can put downward pressure on the birr.
- **Commodity prices**: Coffee is a key export. Higher coffee prices can improve the trade balance and support the birr.

## National Bank of Ethiopia (NBE) Policy

- **Reference rate**: The NBE sets a reference exchange rate. Commercial banks trade within a band.
- **Intervention**: The NBE may buy or sell foreign currency to stabilize the market.
- **Interest rates**: Higher rates can attract foreign capital and support the birr.

## Inflation

High inflation erodes the birr's purchasing power. If prices rise faster in Ethiopia than abroad, the birr tends to weaken in real terms.

## Political and Economic Events

Reforms, elections, conflicts, or global shocks (e.g., pandemic, commodity price swings) can affect investor confidence and the exchange rate.

## For You

When sending remittances or exchanging currency, compare rates across providers. Small differences add up. Use Birr Value to see how banks compare.

What Affects the Birr Exchange Rate?

Ethiopia's banking sector has grown significantly. Here's an overview of the landscape and how to choose a bank.

## The Sector

Ethiopia has over 20 commercial banks. The sector is regulated by the National Bank of Ethiopia (NBE). Banks offer savings, current, and fixed deposit accounts; loans; foreign exchange; and increasingly, digital services.

## Major Banks

- **Commercial Bank of Ethiopia (CBE)**: The largest bank by assets and branches. Strong nationwide presence, CBE Birr mobile banking.
- **Awash Bank**: One of the largest private banks. Wide branch network and digital services.
- **Bank of Abyssinia**: Established private bank with growing digital offerings.
- **Dashen Bank**: Known for technology and innovation.
- **Wegagen Bank**, **United Bank**, **Nib Bank**, **Abay Bank**, and others round out the market.

See our [Banks](/banks) page for a full list and exchange rate comparisons.

## Choosing a Bank

Consider:
- **Branch and ATM access**: Is there a branch or agent near you?
- **Fees**: Account fees, transfer fees, ATM fees
- **Interest rates**: For savings and fixed deposits
- **Digital services**: Mobile app, internet banking
- **Foreign exchange**: If you need FX, compare rates on Birr Value
- **Diaspora services**: Some banks have dedicated diaspora desks

## Account Types

- **Savings**: For individuals; earns interest
- **Current**: For businesses; check-writing, overdraft
- **Fixed deposit**: Lock funds for a period; higher interest
- **Foreign currency**: Some banks offer USD or EUR accounts

## Regulation and Safety

Banks are licensed and supervised by the NBE. Deposits are not explicitly insured by a deposit insurance scheme in the same way as in some countries, but the sector is tightly regulated.

Commercial Banks in Ethiopia: An Overview

Ethiopians have several options to save and grow their money. Here's a practical overview.

## Savings Accounts

- **What**: Deposit money, earn interest, withdraw when needed
- **Interest**: Rates vary by bank; the NBE's policy rate influences them
- **Minimum balance**: Often 100–500 birr
- **Best for**: Emergency funds, short-term savings

## Fixed Deposits (Time Deposits)

- **What**: Lock funds for a set period (3 months, 6 months, 1 year, etc.) in exchange for higher interest
- **Interest**: Usually higher than savings; longer terms often mean better rates
- **Early withdrawal**: May incur a penalty or lower interest
- **Best for**: Goals with a known timeline (e.g., buying a car in one year)

## Government Bonds

- **What**: Lend money to the government; receive interest and principal at maturity
- **Types**: Treasury bills (short-term), bonds (longer-term)
- **Access**: Through banks or the National Bank of Ethiopia
- **Best for**: Low-risk, longer-term savings

## Microfinance

- **What**: Smaller institutions offering savings and loans, often in rural areas
- **Interest**: Can be higher than banks for loans; savings rates vary
- **Best for**: Those without easy access to commercial banks

## Comparing Options

- **Risk**: Banks and government bonds are generally low risk; returns are modest
- **Liquidity**: Savings = high; fixed deposits = low until maturity
- **Returns**: Fixed deposits and bonds often beat savings accounts

Check current rates at your bank. The NBE's policy rate affects what banks offer.

Saving and Investing in Ethiopia

Inflation is the rate at which prices rise over time. It affects how much your birr can buy and the real value of your savings.

## What Is Inflation?

When inflation is 10%, something that cost 100 birr last year costs about 110 birr this year. Your money buys less. Inflation erodes purchasing power.

## Causes in Ethiopia

- **Money supply**: If the central bank prints more money or credit grows fast, inflation can rise
- **Supply shocks**: Drought, fuel price increases, or supply chain issues can push prices up
- **Demand**: Strong demand for goods and services can also drive prices higher
- **Exchange rate**: A weaker birr makes imports more expensive, which can feed into inflation

## Impact on You

- **Savings**: If inflation is 15% and your savings account pays 8%, you're losing purchasing power in real terms
- **Wages**: If wages don't keep up with inflation, living standards fall
- **Borrowing**: If you have a fixed-rate loan, inflation can effectively reduce the real cost of repayment over time

## The National Bank of Ethiopia

The NBE aims for price stability. It uses:
- **Interest rates**: Raising rates can cool demand and inflation
- **Reserve requirements**: Limiting how much banks can lend
- **Exchange rate policy**: Managing the birr to avoid excessive volatility

## What You Can Do

- **Save in instruments that beat inflation**: Fixed deposits and bonds may offer better returns than basic savings
- **Diversify**: Some hold foreign currency or assets as a hedge, within legal limits
- **Budget**: Track spending and adjust as prices change

Follow NBE and government announcements for inflation data and policy updates.

Inflation and the Birr: What You Need to Know

Exchanging foreign currency for birr (or vice versa) in Ethiopia is straightforward if you know where to go and what to expect.

## Where to Exchange

- **Banks**: Commercial banks (CBE, Awash, Abyssinia, etc.) offer exchange services. You typically need an account or ID.
- **Forex bureaus**: Licensed bureaus in cities and at airports. Often convenient for travelers.
- **Hotels**: Some accept foreign currency or offer exchange at less favorable rates.

## Getting a Good Rate

- **Compare**: Rates vary by bank and bureau. Use Birr Value to compare bank rates.
- **Avoid airports when possible**: Airport bureaus often offer worse rates; exchange a small amount for immediate needs, then use a bank or city bureau.
- **Avoid unofficial dealers**: Street dealers may offer tempting rates but pose fraud and legal risks.

## What You'll Need

- **ID**: Passport or national ID
- **Purpose**: For larger amounts, you may need to state the purpose (travel, business, etc.)
- **Receipt**: Keep it for re-exchange when leaving, if applicable

## Limits and Rules

- The NBE sets reference rates; banks and bureaus trade within a band
- Export of birr is restricted; convert excess before departing
- Large transactions may require additional documentation

## For Regular Exchangers

If you frequently exchange (e.g., diaspora, business), consider:
- A bank account with FX services
- Building a relationship with one bank or bureau for better service
- Timing: rates change daily; check Birr Value for current comparisons

Currency Exchange in Ethiopia: Where and How

The National Bank of Ethiopia (NBE) is Ethiopia's central bank. It plays a central role in the economy and the financial system.

## History

The NBE was established in 1963, replacing the State Bank of Ethiopia. It has evolved through Ethiopia's economic and political changes.

## Core Functions

### 1. Issuing Currency

The NBE is the sole issuer of birr banknotes and coins. It ensures adequate supply and works to prevent counterfeiting.

### 2. Monetary Policy

The NBE sets the policy (benchmark) interest rate and uses other tools to influence:
- Inflation
- Economic growth
- The exchange rate

Tools include reserve requirements, open market operations, and moral suasion.

### 3. Regulating Banks

The NBE licenses and supervises commercial banks, microfinance institutions, and other financial entities. It sets capital requirements, prudential rules, and conducts inspections.

### 4. Managing Foreign Exchange

The NBE holds foreign exchange reserves and manages the exchange rate regime. It sets the reference rate and may intervene in the market. It also regulates how banks and bureaus deal in foreign currency.

### 5. Banker to the Government

The NBE acts as the government's banker, managing its accounts and facilitating debt issuance.

## How It Affects You

- **Interest rates**: NBE policy influences what you earn on deposits and pay on loans
- **Exchange rates**: The reference rate and interventions affect how much birr you get for dollars or euros
- **Bank safety**: NBE supervision helps keep the banking system stable

## Transparency

The NBE publishes reports, circulars, and statistics. For the latest on monetary policy and regulations, visit the NBE website.

The National Bank of Ethiopia: Role and Functions

Ethiopian freelancers often need a USD-denominated Mastercard or Visa to receive payments from clients, withdraw earnings, and shop online internationally. Several services offer prepaid or virtual cards that can be applied for online and—where available—mailed to a PO Box in Ethiopia.

## Why Freelancers Need USD Cards

- **Receive payments**: Platforms like Upwork, Fiverr, Toptal, and direct clients often pay via Payoneer, Wise, or similar
- **Online purchases**: Buy software, subscriptions, and services in USD
- **ATM withdrawals**: Access funds in birr or USD at supported ATMs
- **Avoid conversion delays**: Hold and spend USD without immediate conversion to birr

## Services That Offer Cards to Ethiopians

### 1. Payoneer

**What it is**: A global payment platform widely used by freelancers and marketplaces (Upwork, Fiverr, Amazon, etc.).

**Card options**:
- **Physical Mastercard**: Prepaid card in USD. Can be shipped to many countries, including Ethiopia. Delivery is typically via standard mail or express (DHL/FedEx) for a fee.
- **Virtual card**: Instant digital card for online use—no shipping required.

**How to apply**: Sign up at payoneer.com. You’ll need a valid ID, proof of address, and a bank account (optional for receiving). Once approved, you can request a physical card. Cards can usually be shipped to a PO Box—confirm with Payoneer support for Ethiopia.

**Fees**: Account is free. Card issuance and shipping fees vary. ATM withdrawals and currency conversion may have fees. Check Payoneer’s pricing page for current rates.

### 2. Wise (formerly TransferWise)

**What it is**: A multi-currency account and international payment service.

**Card options**:
- **Wise Debit Card**: Visa debit card linked to your Wise balance. Availability for Ethiopia varies—check wise.com for current supported countries.
- If the physical card is not yet available in Ethiopia, you can still use Wise to receive payments and withdraw to a local bank account.

**How to apply**: Sign up at wise.com. Provide ID and address. If the card is available, you can order it to be shipped. PO Box delivery depends on the courier’s policy in Ethiopia.

### 3. Skrill

**What it is**: An e-wallet and prepaid card service popular with freelancers and online workers.

**Card options**:
- **Skrill Prepaid Mastercard**: Physical or virtual card. Availability for shipping to Ethiopia should be verified on skrill.com.
- **Skrill Virtual Card**: For online use only; no shipping needed.

**How to apply**: Register at skrill.com. Complete verification. Order a card if available in your region.

### 4. Payza / Payeer (and similar)

Other e-wallets and payment processors may offer cards. Always verify on their official sites whether they ship to Ethiopia and accept PO Box addresses.

## Getting Your Card Mailed to a PO Box in Ethiopia

- **PO Box**: Many couriers (DHL, FedEx, EMS) can deliver to Ethiopian Post Office PO Boxes. You’ll receive a notification to collect the package at the post office.
- **Street address**: If you have a physical address, some services prefer it. Use the format: Street, City, Region, Ethiopia, Postal Code (if known).
- **Verification**: You may need to show ID when collecting the card at the post office.
- **Delivery time**: Standard shipping can take 2–4 weeks; express (DHL/FedEx) often 5–10 business days, at extra cost.

## Before You Apply

1. **Check current availability**: Service availability and shipping policies change. Confirm on each provider’s website or with their support that they ship to Ethiopia and accept your address type.
2. **Documents**: Have a valid passport or national ID, proof of address (utility bill, bank statement, or official letter), and—if required—proof of freelance work (contract, invoice, or platform profile).
3. **Bank account**: Some services require a local bank account for verification or withdrawals. Others allow card-only use.
4. **Fees**: Compare card issuance, shipping, ATM, and conversion fees across providers.

## Using Your Card in Ethiopia

- **ATMs**: Use ATMs that accept international Mastercard or Visa. CBE, Awash, Dashen, and other banks have ATMs that may support international cards. Check with your bank.
- **Online**: Use the card for international subscriptions, software, and e-commerce.
- **Conversion**: When you withdraw birr, the card issuer converts USD at their rate. Compare with [Birr Value](/banks) to see how it compares to bank rates.

## Summary

| Service   | Card Type        | Ships to Ethiopia | PO Box |
|----------|------------------|-------------------|--------|
| Payoneer | Mastercard       | Check with support| Usually yes |
| Wise     | Visa debit       | Check availability| Depends on courier |
| Skrill   | Mastercard       | Verify on site    | Verify on site |

Always confirm current policies with each provider. Regulations and service availability can change.

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