The Ethiopian Monetary Unit refers to the official currency used in Ethiopia. The Ethiopian monetary unit is known as the Ethiopian Birr (ETB), which is further divided into 100 cents. It is the legal tender for all financial transactions within the country, including payments for goods, services, and debts.
The Ethiopian Birr has been in circulation since 1945 and is managed by the National Bank of Ethiopia, the country's central bank. The currency is issued in various denominations, including banknotes and coins, which are minted to facilitate everyday transactions and store value.
The Ethiopian Monetary Unit, the Birr, plays a vital role in the country's economy. It serves as a medium of exchange, unit of account, and store of value for individuals, businesses, and the government. It sustains economic activities by enabling the buying, selling, and trading of goods and services.
Exchange rates between the Ethiopian Birr and other international currencies fluctuate according to market conditions and government interventions. This affects import and export transactions, foreign investments, and the overall balance of trade.
Additionally, the Ethiopian Monetary Unit contributes to the stability and control of the country's economy. The central bank uses various monetary tools, such as interest rates and reserve requirements, to regulate the money supply, manage inflation, and promote economic growth.
In summary, the Ethiopian Monetary Unit refers to the official currency of Ethiopia, known as the Ethiopian Birr. It is the legal tender used for financial transactions within the country and is managed by the National Bank of Ethiopia. The Birr facilitates economic activities, regulates the economy, and plays a crucial role in domestic and international trade.
