Ethiopian banks display exchange rates for major currencies. Here's how to read them and what they mean for you.
Buying vs. Selling (Bank's Perspective)
- Buying rate: The rate at which the bank buys foreign currency from you. When you sell USD to the bank, you get birr at this rate. Higher is better for you.
- Selling rate: The rate at which the bank sells foreign currency to you. When you buy USD with birr, you pay this rate. Lower is better for you.
So: You sell USD → bank buys → use the buying rate. You buy USD → bank sells → use the selling rate.
Example
If CBE shows USD buying 118.50 and selling 119.00:
- Sell $100 → you receive 11,850 birr (100 × 118.50)
- Buy $100 → you pay 11,900 birr (100 × 119.00)
The spread (119.00 − 118.50 = 0.50) is the bank's margin.
The NBE Reference Rate
The National Bank of Ethiopia publishes a daily reference rate. Commercial banks are allowed to trade within a band around it. The reference rate is a benchmark—actual bank rates may be slightly above or below.
Rate Boards
Banks display rates on boards or screens. You'll typically see:
- Currency (USD, EUR, GBP, etc.)
- Buying and Selling (or "We buy" / "We sell")
- Date (rates change daily)
Some banks also show a "middle" or "mid" rate; that's usually the average of buy and sell.
Why Rates Differ Between Banks
- Competition: Banks compete for FX business.
- Liquidity: Banks with more foreign currency may offer better rates.
- Customer type: Some banks have different rates for retail vs. corporate.
Compare on Birr Value to see which bank offers the best rate for your transaction.
For Remittances
When you receive money from abroad, the remittance provider (Remitly, Wise, etc.) converts at their rate. That rate may differ from bank boards. Compare providers on our Send Money page to see who gives the most birr per dollar.