This FAQ covers essential information about the Ethiopian currency, including its official name, exchange rates, usage rules, and practical tips for travelers and investors. Whether you're planning a trip or researching the economy, these questions and answers will help you understand the birr and its role in Ethiopia.

What is the official currency of Ethiopia?

The official currency of Ethiopia is the Ethiopian birr (ETB), issued by the National Bank of Ethiopia. The birr is subdivided into 100 santim, and banknotes come in denominations of 1, 5, 10, 50, 100, and 200 birr, while coins are available in smaller santim values.

The name "birr" comes from the Ge'ez word for silver, reflecting its historical use as a precious metal currency. Since 2020, the 200 birr note is the highest denomination, introduced to ease cash transactions in the growing economy.

How much is 1 US dollar in Ethiopian birr?

As of early 2026, the exchange rate is approximately 50 to 55 ETB per US dollar in the official market, but the rate fluctuates based on economic conditions and central bank policies. In the parallel or black market, rates can be significantly higher, sometimes exceeding 60 ETB per dollar.

Because Ethiopia has a managed floating exchange rate, the official rate is periodically adjusted by the National Bank. For the most current rates, check with banks, official exchange bureaus, or reliable financial websites before any transaction.

Is the Ethiopian birr a freely convertible currency?

No, the Ethiopian birr is not freely convertible; it is subject to strict foreign exchange controls by the National Bank of Ethiopia. Individuals and businesses must obtain approval to convert large sums, and travelers are limited in how much foreign currency they can exchange.

This means that outside Ethiopia, the birr is rarely accepted or traded. Tourists are advised to exchange money only at authorized banks or hotels, and to keep receipts for any reconversion of unspent birr when leaving the country.

Can I use US dollars or other foreign currencies in Ethiopia?

While the official currency is the birr, US dollars and euros are widely accepted in major hotels, some tour operators, and for international transactions. However, everyday purchases like food, transport, and local markets require birr.

It's recommended to carry a mix of birr for daily expenses and small amounts of dollars for emergencies or large payments. Using credit cards is possible in upscale establishments in Addis Ababa, but cash is still king in most of the country.

Why is the Ethiopian birr devaluing against the dollar?

The Ethiopian birr has experienced significant devaluation due to persistent trade deficits, inflation, and foreign currency shortages. Ethiopia imports more than it exports, putting pressure on the currency, and the central bank has occasionally devalued the birr to boost exports and attract remittances.

Additionally, the government has undertaken economic reforms, including a shift toward a more market-based exchange rate system, which has led to periodic depreciations. These factors combined contribute to the birr's weakening trend over the long term.

What are the best ways to exchange money in Ethiopia?

The best and safest ways to exchange money are through authorized banks, forex bureaus, and major hotels, which offer official rates and provide receipts. Avoid street money changers, as they often give better rates but involve higher risks of counterfeit notes or legal trouble.

  • Banks: Commercial Bank of Ethiopia, Awash Bank, Dashen Bank
  • Forex bureaus: Found in airports and major cities
  • Hotels: Many hotels exchange currency for guests, but rates may be lower.

Always compare rates and keep all receipts, as you may need them to prove the source of your funds when reconverting leftover birr.

How does the Ethiopian birr compare to other African currencies?

Compared to regional currencies like the Kenyan shilling, Tanzanian shilling, or Nigerian naira, the Ethiopian birr is relatively stable but has been weakening faster than some neighbors. For example, in 2026, 1 USD buys about 50-55 ETB, while the Kenyan shilling trades around 120-130 per USD.

Ethiopia's currency is controlled more tightly than many African currencies, with restrictions on convertibility. While the birr is not the weakest currency in Africa, its black-market premium indicates underlying economic pressures.

What should travelers know about using cash in Ethiopia?

Travelers should know that cash is king in Ethiopia, especially outside major cities, and ATMs are scarce in rural areas. It's essential to carry enough birr for daily expenses, but also to keep some US dollars for emergencies.

Credit cards are accepted only in a few high-end hotels, restaurants, and airlines in Addis Ababa. To avoid running out of cash, plan your withdrawals carefully and use ATMs at banks during business hours. Also, note that some ATMs may have withdrawal limits, so check with your bank before traveling.

Final Thoughts

Understanding the Ethiopian currency is crucial for anyone planning to visit or do business in the country. The birr is unique due to its restricted convertibility and the significant gap between official and unofficial exchange rates, which can be both a challenge and an opportunity.

Always use official channels for currency exchange, stay updated on current rates, and budget for cash-only transactions. As Ethiopia continues to reform its economy, the currency's stability may improve, but for now, being prepared is key to a smooth experience.

For the most accurate and up-to-date information, consult the National Bank of Ethiopia or reputable financial sources before making any financial decisions.