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Ethiopian birr

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Ethiopian birr
Reverse of a 1 Ethiopian birr note,
depicting the Tisisat waterfalls.
ISO 4217
CodeETB (numeric:230)
Subunit0.01
Unit
SymbolBr‎ (Latin Script)
ብር(Ethiopic Script)
Denominations
Subunit
1100santim
Banknotes1, 5, 10, 50, 100, 200 birr
Coins1, 5, 10, 25, 50 santim; 1 birr
Demographics
User(s)Ethiopia
Issuance
Central bankNational Bank of Ethiopia
 Websitewww.nbe.gov.et
Valuation
Inflation15%[1]October 2017
 SourceThe World Factbook,2008 est.

Thebirr(Amharic:ብር) is the primary unit of currency inEthiopia.It is subdivided into 100santims.

In 1931,EmperorHaile Selassieformally requested that the international community use the nameEthiopia(as it had already been known internally for at least 1,600 years[2]) instead of the exonymAbyssinia,and the issuingBank of Abyssiniaalso became theBank of Ethiopia.Thus, the pre-1931 currency may be referred to as theAbyssinian birrand the post-1931 currency theEthiopian birr,although neither the country nor the currency changed beyond the name.

186 billion birr ($14.7 billion or €9.97 billion) were in circulation in 2008.

History

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First birr, 1855–1936

[edit]
1932 birr

In the 18th and 19th centuries,Maria Theresa thalersand blocks of salt calledamole tchew(አሞሌ) served as currency in Ethiopia. The thaler was known locally as thebirr(literally 'silver' inGeʽezandAmharic) ortalari(ታላሪ). The Maria Theresa thaler was officially adopted as the standard coin in 1855, although theIndian rupeeand the Mexican dollar were also used in foreign trade.[3]

The Ethiopian talari became the standard unit on 9 February 1893, and 200,000 were produced at the Paris Mint in 1894 forMenelik II.The talari, equivalent to the Maria Theresa thaler, was divided into 20ghersh(alsoguercheorgersh,from theOttomanqirsh) or 40bessa(a small copper coin).

A new Ethiopian coinage appeared about 1903. The new silver birr maintained the same weight andfinenessas the talari, but there was now a quarter-birr and a silver ghersh, the latter 1/16 the weight of the birr. The money of account then became 1 birr, equivalent to 16 ghersh or 32 bessa.

TheBank of Abyssiniawas established in 1905 by Emperor Menelik and the European banking group behind theNational Bank of Egypt;the bank was officially inaugurated by Menelik on 15 February 1906. The Ethiopian coinage gained acceptance only gradually, and the Bank of Abyssinia imported Maria Theresa thalers. By the timeWorld War Ibroke out, the bank was still importing about 1,200,000 of these coins annually. The Bank of Abyssinia put banknotes into circulation in 1915. These notes were denominatedbirrin Amharic andthalerin English. They were used by merchants and foreigners but were not initially accepted generally. However, note circulation increased considerably after 1925.

EmperorHaile Selassiebought out the Bank of Abyssinia in 1931 for £235,000 in order to make it a purely Ethiopian institution. It was reorganized as theBank of Ethiopia.At the same time, the currency was decimalized and token nickel and copper coins were introduced, the birr becoming equal to 100metonnyas(often writtenmatonas). The text on the banknotes appeared in Amharic, French, and English.

By the mid-1930s circulation consisted chiefly of Maria Theresa thalers and Menelik talaris.

Italian lira, 1936–1941

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Not long after the Italian occupation and the attempted transformation of Ethiopia intoItalian East Africa,theItalian lirawas introduced on 15 July 1936 and Ethiopian banknotes were withdrawn from circulation at 3 lire per talari (birr). In an effort to increase the use of Italian paper money, the exchange rate for silver coins (Maria Theresa thalers) was raised to 4.50 lire, then to 5.00, and eventually, in stages, to 13.50. Still, many people kept their Ethiopian coins and banknotes.

RegularItalian coinsand banknotes ofBanca d'Italiacirculated after 15 July 1936. Special notes with a red overprint were authorized for Italian East Africa on 12 September 1938, and a large quantity was printed. It is not clear, however, when, where, and to what extent these special notes actually circulated.

East African shilling, 1941–1945

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During theEast African Campaignof 1941, British forces brought with them Indian, Egyptian, British, and British East African currency, and all were received in official payments. Italian coins and notes of up to 50 lire were allowed to continue in circulation to serve as small change; higher denominations were withdrawn at a rate of 24 lire per shilling. Maria Theresa thalers were allowed to circulate with a value of 1 shilling and10+12pence (or 45 lire). TheEast African shillingbecame the money of account on 1 July 1942; it eventually became the sole legal tender and remained so until 1945.

Regular notes of theEast African Currency Boardwere used for circulation in Ethiopia.

Second birr, 1945–present

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The birr was reintroduced on 23 July 1945 at a rate of 1 birr per 2 shillings. It was pegged to the U.S. dollar at a central rate of 1 birr = US$0.4025, or 2.48447 birr = US$1. On 31 December 1963, this was slightly changed to 2.50 birr = US$1.

The nameEthiopian dollarwas used in the English text on the banknotes. It was divided into 100santims(derived from the Frenchcentime). Birr became the official name, used in all languages, in 1976.

2024 birr floating

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In 2024, Ethiopia undertook reforms, including the liberalization of its foreign exchange market, leading to the floating of the Ethiopian Birr. TheNational Bank of Ethiopia(NBE) spearheaded this initiative, receiving $13.5 billion from international partners to support the transition. This funding, primarily from multilateral lenders like theIMFandWorld Bank,aimed to the adoption of a flexible exchange rate system. Concurrently, Ethiopia secured over $15 billion in financial support from the World Bank, including direct grants, debt extensions, and investment commitments. The Ethiopian Birr experienced a substantial decline, falling 63% against the US dollar within a week of floating. The government's introduction of a floating exchange rate led to a volatile period, with the Commercial Bank of Ethiopia and private banks rapidly adjusting their foreign exchange rates. The exchange rate as indicated by theCommercial Bank of Ethiopia(CBE) is plummeted from 57 birr per US dollar a week ago to the 106 birr per dollar.

Proposed birr symbol

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There have been various proposals for a birr symbol, mostly based on the Geʽez fidel ብ (). One suggested symbol comprises thewith two horizontal slashes on the left hand side.

Coins

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Reverse of a 50 metonnyas coin from 1931 (EE1923)

First birr

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Between 1894 and 1897 copper coins were introduced in denominations of1100and132birr, together with silver 1 ghersh,18,14,12and 1 birr, and gold14,12and 1 werk. In 1931, a new series of coins was introduced consisting of copper 1 and 5 metonnyas, and nickel 10, 20 and 50 metonnyas.

Second birr

[edit]

In 1944 (EE1936 in theEthiopian calendar), coins were reintroduced, with copper 1, 5, 10 and 25 santim and silver 50 santim coins. A second series was issued in 1977 (EE1969). It consisted of aluminium 1 santim, brass 5 and 10 santim, cupro-nickel 25 and 50 santim, andbi-metallic1 birr coins. The most recent issues are:

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

The dates, like the rest of the legend, appear in Amharic, the official language of Ethiopia.

Identification and appearance

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Besides having almost all text in Amharic, there are two features that help to immediately identify an Ethiopian birr. Coins dated before 1977 (EE1969) featurethe Conquering Lion of Judah (a crowned rampant lion holding a cross).This can be seen in the adjacent picture. Coins dated 1977 (EE1969) or later picture the head of a roaring lion, with a flowing mane.

Coins were struck at several mints, including Paris, Berlin, andAddis Ababa.Coins withoutmint markswere generally struck at Addis Ababa. The coins struck at Paris have either the mintmark "A" with the cornucopia and fascesprivy marks,or the cornucopia and torch privy marks without the "A".

Banknotes

[edit]

First birr

[edit]

The Bank of Abyssinia introduced banknotes for 5, 10, 100 and 500 talaris in 1915, and 280,000 talaris worth of notes were printed. The text on the notes was in Amharic and French. A 50-talari note was added in 1929, by which time over 1.5 million talaris in notes were circulating.

The Bank of Ethiopia issued notes in 1932 in denominations of 5, 10, 50, 100 and 500 talaris. A 2-talari note dated 1 June 1933 was issued in honour of the Imperial couple. By the end of 1934, some 3.3 million talaris in notes were circulating.

Second birr

[edit]
1961 birr

On 23 July 1945, notes were introduced by the Bank of Ethiopia in denominations of 1, 5, 10, 50, 100 and 500 birrs. The National Bank of Ethiopia was established by imperial proclamation 207 of 27 July 1963, and began operation on 1 January 1964.[4]The National Bank of Ethiopia took over note production in 1966 and issued all denominations except for the 500 birr.[5]

Banknotes have been issued in the following series:

2020 denominations

[edit]

On 14 September 2020, Ethiopia announced the introduction of new banknotes of 10, 50, 100, and 200 birrs, with the latter being issued as a high denomination note to tackle inflation. Older issues of 10, 50, and 100 birr notes were demonetized in December. The federal government reported that over 113 billion birrs ($3.6 billion) remain hidden from the banks. The federal government also believes this money is being used as a catalyst to the current instability in Ethiopia. In just a month, Ethiopian banks took in 14 billion birrs (around $500 million) into their system, which is expected to increase towards the end of 2020. The measure, announced byPrime MinisterAbiy Ahmed,was reported as a preventative measure against hoarding, counterfeiting and other corruption affecting the economy. He also noted that the country spent 3.7 billion birrs ($101.2 million) to print the new banknotes. Companies and individuals can only cash up to 1.5 million birrs ($41,000). The cash withdrawal from banks should also not exceed 100,000 birrs ($2,737). The old 5-birr notes, while they will remain legal tender, will be replaced with a coin.[5]

Summary

[edit]
Series Denominations
1945 1, 5, 10, 50, 100 and 500 birr
1961 1, 5, 10, 20, 50, 100 and 500 birr
1966 1, 5, 10, 50 and 100 birr
1976 1, 5, 10, 50 and 100 birr
1991 1, 5, 10, 50 and 100 birr
1997 1, 5, 10, 50 and 100 birr
2003 1, 5, 10, 50 and 100 birr
2004 50, 100 birr
2006 1, 5, 10, 50 and 100 birr[6]
2020 10, 50, 100 and 200 birr
Banknotes of the Ethiopian birr (2006 version)
Value Obverse Reverse
1 birr Young boy Tisisat waterfalls(Blue Nile)
5 birr Coffee harvest Kuduandlynx
10 birr Basket weaver Tractor
50 birr Plowing Enqulal Gemb fortress (Gondar)
100 birr Plowing Man, microscope
Banknotes of the Ethiopian birr (2020 version)
Value Obverse Reverse
10 birr Camel, coffee harvest Two couples
50 birr Tractor Factory
100 birr Enqulal Gemb fortress (Gondar) Sof Omar caves; City gate, Harar
200 birr Pigeon Capricorn
Ethiopian birr per US$, 2005–2009
Year Lowest ↓ Highest ↑ Average
Date Rate Date Rate Rate
2005 25 Apr 8.0117 30 Oct 8.4240 8.3100
2006 12 Jun 8.3940 7 Sep 9.1739 8.7510
2007 12 Feb 9.0670 19 Oct 9.6085 9.3921
2008 17 Apr 9.6715 1 Dec 10.7701 9.9167
2009 14 Jul 11.0763 15 Mar 12.9891
[7]
Current ETB exchange rates
FromGoogle Finance: AUDCADCHFCNYEURGBPHKDJPYUSDethioblackmarket.com
FromYahoo! Finance: AUDCADCHFCNYEURGBPHKDJPYUSDethioblackmarket.com
FromXE.com: AUDCADCHFCNYEURGBPHKDJPYUSDethioblackmarket.com
From OANDA: AUDCADCHFCNYEURGBPHKDJPYUSDethioblackmarket.com

See also

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References

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  1. ^"Ethiopia: Impacts of the Birr devaluation on inflation: 1".
  2. ^Hatke, George (2013).Aksum and Nubia: Warfare, Commerce, and Political Fictions in Ancient Northeast Africa.pp. 52–53.
  3. ^PANKHURST, RICHARD, et al. "The Trade of Central Ethiopia in the Nineteenth and Early Twentieth Centuries".Journal of Ethiopian Studies,vol. 2, no. 2, 1964, pp. 41–91.JSTOR,www.jstor.org/stable/41965712. Accessed 20 October 2020.
  4. ^Linzmayer, Owen (2012). "Ethiopia".The Banknote Book.San Francisco, CA: BanknoteNews.com.
  5. ^ab"Ethiopia demonetized old banknote with new prints".AA.14 September 2020.Retrieved14 September2020.
  6. ^Nachthund (7 January 2007)."Update – Ethiopia".Nachthund.biz.Archived fromthe originalon 27 September 2007.Retrieved19 January2007.
  7. ^"FXConverter - Currency Converter for 164 Currencies".Archived fromthe originalon 2 May 2009.Retrieved2 May2009.
[edit]
Ethiopian birr (thaler)
Preceded by:
Maria Theresa thaler
Ratio:at par
Currency of Ethiopia
1894 – 1936
Succeeded by:
Italian lira
Reason:annexed byItalyintoItalian East Africa
Ratio:5 lire = 1 birr
Ethiopian birr (dollar)
Preceded by:
East African shilling
Reason:end of British occupation
Ratio:1 birr = 2 shillings
Currency of Ethiopia
1945 –
Note:English translation was "dollar" before 1976
Succeeded by:
Current
Currency of Eritrea (as part ofEthiopia)
1952 – 1993
Note:Eritreabecame part of a federation with Ethiopia in 1952. Eritrea became a fully integrated part of Ethiopia in 1960
Currency of Eritrea
1993 – 1997
Succeeded by:
Eritrean nakfa
Reason:currency independence
Ratio:at par