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.