Ethiopian birr facts for kids

Quick facts for kids Ethiopian birr
Back of a 1 Ethiopian birr note, showing the Tisisat waterfalls.
ISO 4217 Code	ETB
User(s)	Ethiopia
Inflation	15% October 2017
Source	The World Factbook, 2008 est.
Subunit
1⁄100	santim
Symbol	Br
Coins	1, 5, 10, 25, 50 santim; 1 birr
Banknotes	1, 5, 10, 50, 100, 200 birr

The birr (Amharic: ብር) is the official money used in Ethiopia. It is divided into 100 smaller units called santims.

Before 1931, Ethiopia was often called Abyssinia by people outside the country. In 1931, Emperor Haile Selassie asked the world to use the name Ethiopia. Because of this, the bank that printed the money changed its name from the Bank of Abyssinia to the Bank of Ethiopia. So, the money printed before 1931 can be called the Abyssinian birr, and after 1931, the Ethiopian birr. The money itself didn't change, just its name!

In 2008, about 186 billion birr was being used in Ethiopia. This was worth about $14.7 billion US dollars.

History of the Birr

Early Money in Ethiopia (1855–1936)

In the 1700s and 1800s, people in Ethiopia used different things as money. They used silver coins called Maria Theresa thalers. They also used blocks of salt called amole tchew. The thaler coin was known locally as the birr. This word means 'silver' in the local languages of Geʽez and Amharic.

The Maria Theresa thaler became the official coin in 1855. But other coins, like the Indian rupee, were also used for trading with other countries.

The First Ethiopian Coins

On February 9, 1893, the Ethiopian talari became the official money unit. About 200,000 of these coins were made in Paris in 1894 for Menelik II, who was the Emperor. The talari was similar to the Maria Theresa thaler. It was divided into 20 ghersh or 40 bessa (small copper coins).

Around 1903, new Ethiopian coins were made. The new silver birr coins had the same weight and purity as the talari. But now there were also smaller coins like the quarter-birr and a silver ghersh. One birr was equal to 16 ghersh or 32 bessa.

The Bank of Abyssinia

The Bank of Abyssinia was started in 1905 by Emperor Menelik. It was officially opened in 1906. This bank brought in Maria Theresa thalers because people were used to them. Even during World War I, the bank was still bringing in about 1.2 million of these coins each year.

The Bank of Abyssinia started printing banknotes in 1915. These notes were called birr in Amharic and thaler in English. At first, only traders and foreigners used them. But after 1925, more and more people started using the banknotes.

In 1931, Emperor Haile Selassie bought the Bank of Abyssinia. He wanted it to be a fully Ethiopian bank. It was renamed the Bank of Ethiopia. At this time, the money system changed to a decimal system. This meant one birr was equal to 100 metonnyas. The banknotes had text in Amharic, French, and English.

Italian Lira (1936–1941)

In 1936, Italy took control of Ethiopia. The Italian lira became the new money. Ethiopian banknotes were taken out of use. Many people still kept their Ethiopian coins and banknotes, even though the Italian lira was introduced.

Italian coins and banknotes were used after July 15, 1936. Special notes were also printed for Italian East Africa.

East African Shilling (1941–1945)

During World War II, British forces came to Ethiopia in 1941. They brought money from India, Egypt, and British East Africa. These currencies were accepted for official payments. Italian coins and notes were still used for small change.

The East African shilling became the main money unit on July 1, 1942. It was the only legal money until 1945.

The Modern Birr (1945–Present)

The birr was brought back in 1945. One birr was worth two shillings. On the banknotes, the English text called it the "Ethiopian dollar." It was divided into 100 santims. In 1976, birr became the official name in all languages.

Changes to the Birr in 2024

In 2024, Ethiopia made big changes to its money system. The National Bank of Ethiopia (NBE) allowed the birr to "float." This means its value against other currencies can change freely based on the market.

The NBE got $13.5 billion from international partners to help with this change. This money came from groups like the IMF and World Bank. After the birr started floating, its value dropped a lot. It fell 63% against the US dollar in just one week. For example, one US dollar used to be worth 57 birr. After the change, it became 103 birr.

Ideas for a Birr Symbol

People have suggested different symbols for the birr. Most ideas use the Geʽez letter ብ (bə). One idea is the bə with two lines next to it.

Birr Coins

First Birr Coins

Between 1894 and 1897, copper coins were made. These were in values like 1/100 and 1/32 of a birr. There were also silver coins for 1 ghersh, 1/8, 1/4, 1/2, and 1 birr. Gold coins were also made. In 1931, new coins were introduced. These included copper 1 and 5 metonnyas, and nickel 10, 20, and 50 metonnyas.

Second Birr Coins

In 1944, new coins were brought back. These included copper 1, 5, 10, and 25 santim coins. There was also a silver 50 santim coin. A second set of coins was made in 1977. This set had aluminum 1 santim, brass 5 and 10 santim, and other coins. It also included a 1 birr coin made of two different metals.

The most recent coins are:

• 5 santim from 2006
• 10 santim from 2004
• 25 santim from 2016 (also called semuni)
• 50 santim from 2016
• 1 birr from 2016

The dates on the coins are written in Amharic, Ethiopia's official language.

How to Identify Ethiopian Coins

Ethiopian coins have almost all their text in Amharic. Coins made before 1977 show the Conquering Lion of Judah. This is a crowned lion holding a cross. You can see this in the picture nearby. Coins made in 1977 or later show the head of a roaring lion with a flowing mane.

Coins were made in different places, like Paris, Berlin, and Addis Ababa. Coins without a special mark were usually made in Addis Ababa.

Birr Banknotes

First Birr Banknotes

The Bank of Abyssinia started printing banknotes in 1915. These were for 5, 10, 100, and 500 talaris. The notes had text in Amharic and French. A 50-talari note was added in 1929.

The Bank of Ethiopia printed notes in 1932. These were for 5, 10, 50, 100, and 500 talaris. A special 2-talari note was printed in 1933 to honor the Emperor and Empress.

Second Birr Banknotes

1961 birr

On July 23, 1945, the Bank of Ethiopia introduced new banknotes. These were for 1, 5, 10, 50, 100, and 500 birrs. The National Bank of Ethiopia was created in 1963 and started working in 1964. This bank took over printing the banknotes in 1966.

Banknotes have been printed in many different series over the years.

New Banknotes in 2020

On September 14, 2020, Ethiopia announced new banknotes. These were for 10, 50, 100, and 200 birrs. The 200 birr note was new and had a higher value. This was done to help with inflation (when prices go up).

Older 10, 50, and 100 birr notes were taken out of use in December 2020. The government said that over 113 billion birrs were hidden outside of banks. They believed this hidden money was causing problems for the economy.

In just one month, Ethiopian banks received 14 billion birrs back into the system. Prime Minister Abiy Ahmed said these changes would help stop hoarding money and fake money. He also said it cost 3.7 billion birrs to print the new notes. There were also new rules about how much cash companies and people could take out of banks.

Summary of Banknote Series

What's on the Banknotes?

Images for kids

• 

  1932 birr

• 

  Back of a 50 metonnyas coin from 1931

See also

• Economy of Ethiopia