1. What is the official currency of Ethiopia?

The official currency of Ethiopia is the Ethiopian Birr (ETB).

2. Are there any restrictions on foreign currency transactions in Ethiopia?

Yes, there are restrictions on foreign currency transactions in Ethiopia. The government of Ethiopia tightly controls all foreign currency transactions and has strict regulations in place to oversee the import and export of goods and services.

1. Exchange Rate Regime:

Ethiopia operates a fixed exchange rate regime managed by the National Bank of Ethiopia (NBE). The official exchange rate is determined by the NBE and is usually pegged to the US dollar. The current official exchange rate is around 35 Ethiopian Birr (ETB) per US dollar.

2. Capital Controls:

Ethiopia has strict capital controls in place, which limit the movement of foreign currency into and out of the country. Foreign individuals or entities must obtain permission from the NBE before transferring any amount above $50,000 out of the country.

3. Repatriation:

The repatriation of profits and dividends requires approval from the NBE. Companies must have at least 30% local ownership to be eligible for repatriating profits.

4. Import and Export Controls:

All imports require authorisation from the Ministry of Trade, with some specified exceptions such as humanitarian goods and non-commercial samples valued under $500. Exporting goods also requires authorisation from various government agencies, including customs and tax authorities.

5. Foreign Currency Accounts:

Foreign currency accounts are only available to citizens living or working abroad, diplomatic missions, international organisations, or foreign investors with an investment permit from the Ethiopian Investment Commission.

6. Black Market:

The black market for foreign currency is illegal in Ethiopia but still exists due to shortages of foreign currency in the official market. Transactions on the black market are not protected by any laws or regulations and can be risky for foreigners.

Overall, foreign investors should be aware that conducting business in Ethiopia may involve navigating through complex regulations related to foreign currency transactions.

3. What is the current exchange rate for local currency to US dollar in Ethiopia?

According to the latest data from XE, as of October 2021, the current exchange rate for Ethiopian Birr (ETB) to US Dollar (USD) is approximately 1 ETB = 0.023 USD. However, exchange rates can fluctuate daily and may vary depending on the bank or currency exchange service used. It is recommended to check with a reputable source for the most up-to-date and accurate exchange rate when conducting transactions involving foreign currency.

4. Is it better to use cash or credit cards for purchases in Ethiopia?

It is generally better to use cash for purchases in Ethiopia, as credit cards may not be accepted at many establishments outside of larger cities. Additionally, there may be high transaction fees and unreliable internet connections for processing credit card payments. It is recommended to exchange currency at a bank or authorized exchange bureau before making purchases with cash.

5. Do businesses in Ethiopia typically accept US dollars or do they prefer local currency?

It is generally preferred to use the local currency, the Ethiopian birr, for transactions within Ethiopia. Most businesses in Ethiopia only accept cash payments in the local currency and may not accept US dollars. There are some hotels, international chain stores and major tourist attractions that may accept US dollars, but it is always best to have the local currency on hand for day-to-day transactions.

6. Are there any hidden fees or charges when exchanging money in Ethiopia?

It is important to check with your bank or currency exchange provider what fees or charges they may apply when exchanging money in Ethiopia. Some potential fees to be aware of may include transaction fees, foreign exchange fees, ATM withdrawal fees, and commissions. Additionally, some places may have a lower exchange rate than others, so it’s always a good idea to shop around and compare rates before making an exchange.

7. Can I use ATMs from my home country bank in Ethiopia to withdraw money?

It is unlikely that you will be able to use ATMs from your home country bank in Ethiopia to withdraw money. This is because ATM networks are generally country-specific, and each country’s banks have their own specific network for processing transactions. In order to withdraw money in Ethiopia, it is best to use an ATM from a local bank or exchange currency at a bank or currency exchange office.

8. Is it necessary to tip service workers and what is the customary amount in Ethiopia?

Tipping is not a common practice in Ethiopia, but it is appreciated by service workers. The customary tip amount varies depending on the nature of the service and the quality of the service provided. It is recommended to tip around 10-15% of the total bill for excellent service. If a gratuity charge has already been included in your bill, you are not expected to leave an additional tip.

9. Can I purchase traveler’s checks before traveling to Ethiopia, and are they widely accepted?

Traveler’s checks are not widely accepted in Ethiopia. It is recommended to have cash (US dollars or Ethiopian birr) and credit/debit cards for your trip, as these are more commonly used forms of payment. Some banks in Ethiopia may accept traveler’s checks, but it is best to check with individual branches before traveling.

10. Are there any restrictions or limits on bringing foreign currency into or out of Ethiopia?

There are some restrictions and limits on bringing foreign currency into or out of Ethiopia. According to the National Bank of Ethiopia, travelers entering or exiting the country are allowed to bring up to $3,000 (or equivalent) in cash without having to declare it. Larger amounts must be declared and supported by relevant documents, such as bank statements or receipts from exchanging foreign currency at a bank. Additionally, there is a limit of 1,000 Ethiopian birr (approximately $33 USD) for both locals and foreigners when leaving the country. This means that individuals cannot take more than this amount when they exit Ethiopia. Failure to comply with these rules may result in fines or confiscation of funds.

It is also important to note that only Ethiopian nationals are allowed to import and export Ethiopian currency (birr). Non-residents can only possess up to 200 birr from their leftover travel budget if they brought in more than $3,000 (or equivalent) when entering the country.

Also, travelers should be aware that individual airlines may have their own restrictions on the amount of cash and forms of currency that can be brought onto flights. It is a good idea to check with the specific airline before traveling.

Overall, it is important for travelers to familiarize themselves with the latest regulations and restrictions before bringing any foreign currency into or out of Ethiopia. It is recommended to exchange money at authorized banks or official exchange bureaus rather than relying on unregulated street vendors. Failure to follow these guidelines may result in penalties or legal consequences.

11. Do major hotels and restaurants accept credit cards, and if so, which types are most commonly accepted?

Yes, most major hotels and restaurants accept credit cards. The types of credit cards accepted may vary, but the most commonly accepted are Visa, Mastercard, American Express, and Discover. It is always best to check with the individual hotel or restaurant beforehand to confirm which types of credit cards they accept.

12. Are there any unique features of the currency used in Ethiopia, such as coins with different values or special designs?

Yes, the currency used in Ethiopia is called the Ethiopian birr and it has several unique features.

Firstly, the birr is divided into 100 cents, however, due to inflation and low value, cents are no longer used in daily transactions and only appear on paper bills.

Secondly, while most countries use Arabic numerals for their currency denominations, Ethiopia uses its own unique script known as the Ge’ez script on its banknotes.

Thirdly, each denomination of Ethiopian birr has a different color and design. For example, the 1 birr note is green and features an image of coffee harvesting and roasting, while the 50 birr note is blue and features images of farming and irrigation projects.

Lastly, there are also coins in circulation with values of 1 cent, 5 cents, 10 cents, 25 cents, and 50 cents. The designs on these coins feature images such as traditional musical instruments or animals native to Ethiopia.

13. Is haggling acceptable when making purchases, especially in markets and smaller shops?

In many cultures, haggling is a common practice when making purchases in markets and smaller shops. It is seen as a negotiation process between the buyer and the seller to reach a mutually agreeable price for the item being sold. In some cultures, such as in many Middle Eastern and Asian countries, haggling is expected and part of the shopping experience. However, in other cultures, such as in Western countries, haggling may not be as socially acceptable and prices are generally more fixed. It is important to observe local customs and norms when deciding whether or not to haggle.

14. Can I pay for goods and services with a mix of both local currency and US dollars?

It is possible to pay with a mix of local currency and US dollars, but it depends on the country and business. In some countries, businesses may accept both currencies, while others may only accept one or the other. It’s always best to check with the business beforehand to see what forms of payment they accept.

15. What is the most convenient way to exchange money while traveling through different regions of Ethiopia?

The most convenient way to exchange money while traveling through different regions of Ethiopia is by using ATMs. Most major cities and tourist areas will have ATMs that accept international cards. It is also recommended to exchange some money at the airport upon arrival, as well as carrying some cash in case of emergencies or in remote areas where ATMs may not be available. Additionally, some hotels and tour companies may accept credit cards, but it is always best to have cash on hand for smaller purchases and transactions.

16. Are there alternative forms of payment in addition to cash and credit cards, such as mobile payments or digital wallets in Ethiopia?

Yes, there are alternative forms of payment in Ethiopia, such as mobile payments and digital wallets. The most prominent mobile payment platform is Ethio Telecom’s “Tele-Birr” service, which allows users to make payments using their mobile phones. Other popular options include HelloCash and M-Birr.

Digital wallets are also gaining popularity in Ethiopia. Companies like CBE Birr and Amole provide users with a digital wallet that can be linked to their bank account or used for peer-to-peer transactions.

However, it should be noted that these alternative forms of payment are not yet widely accepted by all merchants in the country. Cash and credit cards are still the most commonly used payment methods in Ethiopia.

17. Is tipping expected during taxi rides, at hotels, or at other specific locations like spas or salons in Ethiopia?

Tipping is not expected in Ethiopia, but it can be considered a sign of goodwill and generosity. Some tourists may choose to tip taxi drivers, hotel staff, or spa/salon employees if they feel that the service was exceptional. However, there is no set amount for tipping and it is not an obligation.

18. Are there certain stores where tourists can receive tax refunds on their purchases before leaving Ethiopia?

Yes, tourists can receive tax refunds on their purchases at designated Value Added Tax (VAT) refund centers at the airport before leaving Ethiopia. These stores must be registered with the Ethiopian Revenue and Customs Authority and have a VAT registration number. Visitors must provide their passport, flight ticket, and original purchase receipt to receive a tax refund. The minimum purchase amount eligible for a tax refund varies, but is usually around 500 ETB (approximately $15 USD).

19..How should I handle my leftover foreign currency when departing from Ethiopia, including coins and smaller bills?

1. Exchange them at the airport: The easiest way to get rid of leftover foreign currency is to exchange it at the airport before you depart. Most airports have currency exchange facilities that can convert your coins and smaller bills into your home currency.

2. Use it for shopping: If you have a significant amount of foreign currency left, you can use it to buy souvenirs or other items at the airport or duty-free shops. This way, you can get rid of your leftover currency and also bring back some unique items from Ethiopia.

3. Donate it: Consider donating your leftover foreign currency to a charity or non-profit organization that accepts international donations. This way, you can contribute to a good cause and make use of your spare change.

4. Keep it for future use: If you plan on returning to Ethiopia in the future, you can keep your leftover currency for next time. Just make sure to check the expiration date of the notes before keeping them.

5. Give it as a tip: In many countries, tipping in foreign currencies is accepted and appreciated by service workers, especially in tourist areas. You can leave your spare change as a tip for waiters, bellboys, taxi drivers, etc.

6. Sell it online: There are various websites that allow travelers to sell their leftover foreign currency online. You can do some research to find a reputable platform and list your unused notes and coins for sale.

7. Save them as souvenirs: Coins and smaller bills from different countries can make interesting collectibles and souvenirs. You can save them as mementos of your trip to Ethiopia or give them as gifts to friends and family.

Regardless of how you choose to handle your leftover foreign currency, always verify the current exchange rate before exchanging it or using it for shopping purposes to ensure that you’re getting a fair deal.

20. Is there a limit on the amount of local currency I can withdraw from ATMs in Ethiopia each day?

Yes, there is typically a daily withdrawal limit set by the banks in Ethiopia. This amount may vary depending on the specific bank and ATM machine being used. It is recommended to check with your bank or the specific ATM location for their daily withdrawal limit.