Banking & Currency Glossary

The official currency of Ethiopia. 1 birr = 100 santim.

A financial institution that accepts deposits, lends money, and provides payment services.

A deposit account that earns interest; used for storing money.

A deposit account for frequent transactions; may offer check-writing.

The cost of borrowing or the return on savings; expressed as a percentage.

The price of one currency in terms of another (e.g., 1 USD = X birr).

Money sent from abroad to Ethiopia by diaspora or migrant workers.

The central bank; issues currency and sets monetary policy.

Trading one currency for another; forex.

Money placed in a bank account.

Taking money out of a bank account.

Money borrowed from a bank; repaid with interest.

A general rise in prices; reduces purchasing power of the birr.

Central bank actions to control money supply and interest rates.

Percentage of deposits banks must hold at the central bank.

Network for international bank transfers.

Banking services accessed via mobile phone.

Ethiopia's major mobile money platform operated by Ethio Telecom.

Automated Teller Machine; for cash withdrawals and deposits.

Card linked to a bank account for payments and withdrawals.

Bank guarantee for international trade payments.

Borrowing beyond account balance up to a limit.

Deposit locked for a set period; earns higher interest.

Subunit of the birr; 100 santim = 1 birr.

Bank that serves individuals and businesses (vs. central bank).

Ethiopians living abroad; major source of remittances.

Collecting remitted money in cash from an agent.

Moving money between bank accounts.

Difference between mid-market rate and rate offered by a provider.

The average between buy and sell rates; often used as a benchmark.