Ethiopian Birr: The Complete Guide to Ethiopia’s Currency

The Ethiopian birr (Br) stands as one of Africa’s most historically significant currencies, with roots stretching back centuries through Ethiopia’s rich and independent history. As the only African nation to successfully resist European colonization (except for a brief Italian occupation), Ethiopia’s currency reflects its unique cultural heritage and economic journey. Whether you’re planning a trip to this East African nation, conducting business there, or simply interested in world currencies, understanding the birr provides fascinating insights into Ethiopia’s past and present economic landscape.

Official Currency Name and Symbol

The official currency of Ethiopia is the Ethiopian birr, abbreviated as “Br” in Latin script and written as “ብር” in Amharic script (Ethiopia’s official working language). The word “birr” itself derives from the Ge’ez and Amharic languages, meaning “silver” – a reference to its historical value standard. The birr is subdivided into 100 santims (derived from the French “centime”), though santims are rarely used in everyday transactions due to inflation.

There have been various proposals for an official birr symbol, with most based on the Ge’ez fidel ብ (bə). One suggested symbol comprises the bə with two horizontal slashes on the left-hand side, though no single symbol has been universally adopted in the way that the dollar ($) or euro (€) symbols have been standardized.

The currency code for the Ethiopian birr in international banking and foreign exchange is ETB, with the numeric code 230 according to the ISO 4217 standard. This code is used in international money transfers, currency exchange services, and global financial markets.

A Brief History of Ethiopian Currency

Maria Theresa thaler, which circulated in Ethiopia before the modern birr

Ethiopia’s monetary history is as rich and complex as its cultural heritage, evolving through several distinct phases:

Early Exchange Systems (Pre-18th Century)

Although the ancient Kingdom of Aksum issued copper, silver, and gold coins as early as the 3rd century CE, by the 18th century, trade in Ethiopia was primarily facilitated through barter or “primitive money.” This included items such as cloth bolts, iron bars, beads, gold bracelets, and even cartridges. Perhaps the most widespread medium of exchange was blocks of salt called amole tchew (አሞሌ), which circulated from their origins in the Danakil Depression to as far south as Lake Zway. The use of amole tchew is documented as late as 1911.

Maria Theresa Thaler Era (1855-1894)

Between 1771 and 1805, the Maria Theresa thaler, a silver coin from Austria, gradually gained acceptance in Ethiopia. Known locally as the birr (literally ‘silver’) or talari (ታላሪ), it was officially adopted as Ethiopia’s standard coin in 1855. The Indian rupee and Mexican dollar were also used in foreign trade during this period, though most coins were hoarded rather than circulated.

First National Currency (1894-1936)

Early Ethiopian birr coins from Emperor Menelik II’s reign

Emperor Menelik II had considered issuing an Ethiopian currency as early as 1875. Following the Treaty of Uccialli, an agreement was negotiated allowing Ethiopia to issue its own currency, with coins to be struck at the Italian mint. Despite deteriorating relations with Italy, Menelik persevered, and on February 10, 1893, he issued a decree for a new coinage. The first coins were struck the following year, though in limited quantities.

After Ethiopia’s victory in the Battle of Adwa (1896), a new Ethiopian coinage appeared. The silver birr maintained the same weight and fineness as before, but smaller denominations were reorganized. These coins were produced at the Paris Mint, which produced 815,000 birr in the first three years.

Bank of Abyssinia and Paper Currency (1906-1936)

The Bank of Abyssinia was established in 1905 by Emperor Menelik II and the European banking group behind the National Bank of Egypt. The bank put banknotes into circulation in 1915, denominated birr in Amharic and thaler in English. These notes initially had limited circulation, primarily used by merchants and foreigners in the capital for larger transactions.

Bank of Ethiopia Era (1931-1936)

In 1931, Emperor Haile Selassie bought out the Bank of Abyssinia for £235,000 sterling to make it a purely Ethiopian institution, reorganizing it as the Bank of Ethiopia. At the same time, the currency was decimalized, with the birr becoming equal to 100 metonnyas (often written matonas). The text on banknotes appeared in Amharic, French, and English.

Italian Occupation (1936-1941)

Following the Italian occupation and attempted transformation of Ethiopia into Italian East Africa, the Italian lira was introduced on July 15, 1936. Ethiopian banknotes were withdrawn at a rate of 3 lire per talari (birr). Despite efforts to increase the use of Italian paper money by raising exchange rates for silver coins, many Ethiopians kept their Ethiopian coins and banknotes.

British Administration (1941-1945)

During the East African Campaign of 1941, British forces liberated Ethiopia and brought various currencies with them. The East African shilling became the money of account on July 1, 1942, eventually becoming the sole legal tender until 1945.

Modern Birr (1945-Present)

Evolution of Ethiopian birr banknotes from Emperor Haile Selassie era to modern designs

The birr was reintroduced on July 23, 1945, at a rate of 1 birr per 2 shillings. Initially, the name “Ethiopian dollar” was used in the English text on banknotes, though “birr” became the official name in all languages in 1976. The currency was initially pegged to the U.S. dollar at 2.48447 birr = US$1, slightly adjusted to 2.50 birr = US$1 in 1963.

Through Ethiopia’s various political transitions—from imperial rule under Haile Selassie to the Derg military government (1974-1991) and the current federal democratic republic—the birr has remained the national currency, though with changing designs reflecting each era’s political ideology.

Current Banknotes and Coins in Circulation

Banknotes

Current Ethiopian birr banknotes from the 2020 series (10, 50, 100, and 200 birr)

On September 14, 2020, Ethiopia introduced a new series of banknotes with enhanced security features and distinctive design elements. This currency reform was implemented to tackle hoarding, counterfeiting, and other economic issues affecting the country. The new series replaced the previous 10, 50, and 100 birr notes while introducing a new 200 birr denomination.

The new banknotes feature improved security elements including holographic strips, color-shifting ink, and watermarks. The designs reflect Ethiopia’s natural and historical features while also representing the country’s development aspirations through imagery of agriculture, industry, and cultural heritage.

The older 5-birr note, while still legal tender, is being gradually replaced with a coin. During the currency transition, the Ethiopian government reported that over 113 billion birr ($3.6 billion) was being held outside the banking system, and the reform aimed to bring this money into formal financial channels.

Coins

Current Ethiopian birr coins in circulation

The current coins in circulation include:

• 5 santim (2006/EE1998)
• 10 santim (2004/EE1996)
• 25 santim (2016/EE2008; also called semuni)
• 50 santim (2016/EE2008)
• 1 birr (2016/EE2008)

Ethiopian coins have distinctive features that help identify them. Coins dated before 1977 (EE1969) feature the Conquering Lion of Judah (a crowned rampant lion holding a cross). Coins dated 1977 (EE1969) or later depict the head of a roaring lion with a flowing mane.

The dates on Ethiopian coins appear in Amharic, following the Ethiopian calendar (EE), which is approximately seven to eight years behind the Gregorian calendar. Coins have been struck at several mints, including Paris, Berlin, and Addis Ababa, with those without mint marks generally struck at Addis Ababa.

Exchange Rate Information

Ethiopian birr exchange rate fluctuations against major currencies (2019-2024)

Recent Devaluation and Current Rates

In 2024, Ethiopia undertook significant economic reforms, including the liberalization of its foreign exchange market, leading to the floating of the Ethiopian birr. This policy shift, spearheaded by the National Bank of Ethiopia (NBE), was supported by $13.5 billion from international partners, primarily multilateral lenders like the IMF and World Bank.

The impact was dramatic: the Ethiopian birr experienced a substantial decline, falling approximately 63% against the US dollar within a week of floating. The exchange rate as indicated by the Commercial Bank of Ethiopia (CBE) plummeted from 57 birr per US dollar to approximately 106 birr per dollar by mid-2024.

Historical Exchange Rate Trends

Historically, the Ethiopian birr was relatively stable compared to many African currencies due to the government’s managed exchange rate policy. From 2005 to 2019, the birr gradually depreciated against major currencies, but in a controlled manner:

The 2024 devaluation represents the most significant change in the birr’s value in recent history, marking a departure from the previous managed exchange rate system to a more market-determined approach.

Economic Context and Recent Developments

Addis Ababa’s financial district, hub of Ethiopia’s economic development

Ethiopia’s Economic Landscape

Ethiopia has been one of Africa’s fastest-growing economies over the past decade, with real GDP growth averaging around 10% between 2004 and 2014. However, the country faces significant structural challenges, including high inflation, foreign exchange shortages, and a large trade deficit.

Agriculture constitutes around 85% of the labor force, though the service sector represents the largest portion of GDP. Coffee remains Ethiopia’s largest foreign exchange earner, with the country being Africa’s largest coffee producer. Other important exports include oilseeds, gold, leather products, and more recently, floriculture products.

2024 Currency Reform and Its Implications

Ethiopian Prime Minister Abiy Ahmed announcing economic reforms

The 2024 currency liberalization was part of broader economic reforms aimed at addressing persistent macroeconomic imbalances. Key aspects of these reforms include:

• Flexible Exchange Rate: Moving from a managed exchange rate to a market-determined system
• IMF Support: Securing a $3.4 billion loan from the International Monetary Fund
• World Bank Assistance: Over $15 billion in financial support, including direct grants, debt extensions, and investment commitments
• Wage Adjustments: Significant salary increases for public sector employees, particularly favoring lower-income earners
• Banking Reforms: Measures to strengthen the financial sector and improve access to foreign currency

Inflation and Cost of Living

Inflation has been a persistent challenge for Ethiopia’s economy. According to the National Bank of Ethiopia, inflation peaked at 35.1% in December 2021, stabilizing slightly at 33.8% by December 2022. Prior to the 2024 currency reform, projections suggested a decrease to 24.5% by the end of 2023 and further to 18.5% by the end of 2024.

However, the sharp devaluation of the birr in 2024 has led to significant price increases for basic commodities, particularly imported goods. This has intensified the cost-of-living crisis, especially affecting public sector employees and urban residents.

Impact on International Development and Business

For international organizations and businesses operating in Ethiopia, the currency devaluation presents both challenges and opportunities:

The government has emphasized that these reforms, while painful in the short term, are necessary for long-term economic stability and growth. The success of these measures will depend on effective implementation and complementary policies to protect vulnerable populations from the negative impacts of adjustment.

Practical Information for Travelers

Currency exchange service in Addis Ababa with current rates displayed

Where to Exchange Money

Travelers to Ethiopia have several options for exchanging foreign currency:

• Banks: Commercial banks such as Commercial Bank of Ethiopia, Dashen Bank, and Awash Bank offer currency exchange services with official rates. These are generally available in major cities and at international airports.
• Hotels: Many international hotels in Addis Ababa and other major tourist destinations offer currency exchange services, though often at less favorable rates than banks.
• Authorized Forex Bureaus: These can be found in major cities and tourist areas, offering competitive rates and often more convenient hours than banks.
• Bole International Airport: Currency exchange services are available at Addis Ababa’s international airport, though rates may be less favorable than in the city.

Acceptance of Foreign Currencies

Some hotels and tourist establishments accept US dollars

While the Ethiopian birr is the only legal tender for everyday transactions in Ethiopia, some exceptions exist:

• US Dollars: Some international hotels, tour operators, and high-end establishments catering to tourists may accept US dollars, particularly for larger expenses like accommodation or tour packages.
• Euros: Less widely accepted than US dollars but may be taken at some tourist-oriented businesses.
• Credit Cards: Major credit cards (Visa and MasterCard) are increasingly accepted at international hotels, upscale restaurants, and some shops in Addis Ababa, but their acceptance remains limited outside the capital.

It’s important to note that most everyday transactions, including restaurants, local transportation, markets, and smaller shops, require payment in birr. Even where foreign currencies are accepted, the exchange rate offered may not be favorable.

ATMs and Banking Services

ATM machines in Addis Ababa for withdrawing Ethiopian birr

ATM availability in Ethiopia has improved significantly in recent years, particularly in Addis Ababa and other major cities:

• ATM Networks: Dashen Bank has the most extensive ATM network that accepts international cards. Commercial Bank of Ethiopia and some other private banks also have ATMs that accept foreign cards.
• Card Compatibility: Most ATMs accept Visa cards, with fewer accepting MasterCard. American Express and other cards have very limited acceptance.
• Withdrawal Limits: Daily withdrawal limits vary by bank but are typically around 4,000-5,000 birr per transaction, with a maximum of 2-3 transactions per day.
• Locations: ATMs can be found at major banks, shopping centers, hotels, and Bole International Airport in Addis Ababa. Outside the capital, ATM availability becomes more limited, particularly in rural areas.

Money-Saving Tips

To get the most value when using Ethiopian currency:

• Compare Rates: Check exchange rates at different banks and forex bureaus before exchanging large amounts.
• Avoid Black Market: Despite potentially better rates, illegal currency exchange carries risks of counterfeit notes and legal consequences.
• Carry Small Denominations: Many small businesses and taxis may have difficulty providing change for large bills.
• Inform Your Bank: Notify your bank of your travel plans to prevent your cards from being blocked for suspicious activity.
• Budget for Cash: Given the limited credit card acceptance, ensure you have adequate cash for your needs, especially when traveling outside major cities.

Cultural and Historical Significance of Currency Designs

Cultural and historical elements featured on Ethiopian birr banknotes

Ethiopian currency designs offer fascinating insights into the country’s rich history, cultural heritage, and national aspirations. The imagery on birr notes and coins has evolved over time, reflecting changing political systems and national priorities while maintaining connections to Ethiopia’s unique identity.

Historical Symbolism

Early Ethiopian coins and banknotes during the imperial era prominently featured symbols of the monarchy:

• The Lion of Judah: A powerful symbol of the Ethiopian monarchy, representing the claimed lineage from King Solomon and the Queen of Sheba. This crowned lion holding a cross appeared on coins and banknotes during the imperial period.
• Imperial Portraits: Images of emperors, particularly Haile Selassie, were featured on currency during the imperial era, emphasizing the central role of the monarchy in Ethiopian identity.
• Orthodox Christian Imagery: Reflecting Ethiopia’s long Christian history, religious symbols and church architecture appeared on some currency designs.

Post-Revolution Symbolism

Comparison of currency designs from imperial and post-revolution Ethiopia

After the 1974 revolution that overthrew Emperor Haile Selassie, currency designs shifted dramatically to reflect the new socialist ideology:

• Workers and Farmers: Images of industrial workers, farmers, and agricultural scenes replaced royal imagery, emphasizing the socialist focus on labor and production.
• Industrial Development: Factories, dams, and other infrastructure projects featured prominently, highlighting modernization and development goals.
• National Unity: Designs incorporated elements representing Ethiopia’s diverse ethnic groups, promoting a unified national identity.

Contemporary Designs

The current banknotes, introduced in 2020, blend traditional cultural elements with forward-looking themes:

These design elements not only serve aesthetic purposes but also function as expressions of national identity and aspirations. Through its currency, Ethiopia communicates its historical continuity, cultural richness, and vision for the future.

Currency Regulations and Restrictions

Currency checks at Ethiopian customs, Bole International Airport

Currency Import Regulations

When entering Ethiopia, travelers should be aware of the following regulations regarding bringing currency into the country:

• Foreign Currency Declaration: Visitors entering Ethiopia with foreign currency exceeding the equivalent of $3,000 USD must declare this amount to customs officials upon arrival.
• Documentation: A currency declaration form must be completed and submitted to customs. This form serves as proof of legal importation and will be required if you wish to convert large amounts of local currency back to foreign currency when departing.
• No Restrictions on Amount: There is no upper limit on how much foreign currency you can bring into Ethiopia, provided it is properly declared.
• Ethiopian Birr Import: It is prohibited to import Ethiopian birr into the country. The currency must be obtained within Ethiopia through official channels.

Currency Export Regulations

Currency declaration form required when exporting large amounts of foreign currency

When leaving Ethiopia, the following regulations apply:

• Foreign Currency Export: Visitors may take out the amount of foreign currency they declared upon entry. Any amount exceeding the declared sum must be supported by bank withdrawal receipts or other official documentation.
• Ethiopian Birr Export: The export of Ethiopian birr is strictly limited to 200 birr per person. This restriction is enforced to prevent currency speculation and maintain control over the national currency.
• Converting Birr Before Departure: Travelers should convert unspent birr back to foreign currency before departure, as exchanging Ethiopian currency outside the country is extremely difficult, if not impossible.
• Receipts Requirement: To convert birr back to foreign currency, you must present the original currency exchange receipts from when you initially changed your money.

Banking Regulations for Foreigners

Foreign visitors should be aware of these additional banking regulations:

• Bank Accounts: Non-resident foreigners can open foreign currency accounts at Ethiopian banks with proper documentation, typically including a passport and visa.
• Business Transactions: Foreign businesses operating in Ethiopia must follow specific regulations regarding currency conversion and repatriation of profits, as outlined by the National Bank of Ethiopia.
• Foreign Exchange Services: Only authorized banks and forex bureaus are legally permitted to exchange currency. Using unofficial currency traders is illegal and carries significant risks.
• Payment for Services: Many tourism services, particularly those offered by international hotels and tour operators, may be payable in foreign currency, but most everyday transactions must be conducted in birr.

Conclusion

Ethiopia’s evolving economy reflected in modern marketplace activities

The Ethiopian birr stands as a fascinating window into the country’s rich history, cultural heritage, and economic evolution. From its origins in the Maria Theresa thaler to the modern digital-ready currency of today, the birr has adapted to changing political systems, economic policies, and technological advancements while maintaining its role as a symbol of Ethiopian sovereignty.

The 2024 currency liberalization marks a significant turning point in Ethiopia’s economic management, bringing both challenges and opportunities. While the sharp devaluation has created immediate hardships through higher prices for imported goods, it also represents a step toward a more sustainable economic model with improved access to foreign exchange and reduced market distortions.

For travelers and businesses engaging with Ethiopia, understanding the birr’s history, current status, and regulations is essential for navigating financial transactions effectively. As Ethiopia continues its economic development journey, its currency will likely evolve further, reflecting the country’s unique blend of ancient heritage and modern aspirations.