The National Bank of Ethiopia (NBE) has issued “Legal Tender Currency Notes Redemption Directive No. CMD/2/2020”, as per the power bestowed on it by the National Bank of Ethiopia Establishment (as Amended) Proclamation No. 591/2008.
The Directive that came into effect as of September 14th, 2020 has introduced the 200 Birr note as a new denomination and the new currency of Ethiopia, while it gave a facelift to 100 Birr note, 50 Birr note, and 10 Birr note. The current 5 Birr note and the denominations in coins will continue serving as legal tenders of the country.
The Directive provides that the old notes (100 Birr note, 50 Birr note, and 10 Birr) will be exchanged “at one Birr equals one Birr of the new notes” within the time and at the place that is to be determined by NBE from time to time. Any redemption of the old notes over Birr 5,000 (five thousand) shall be effected by a deposit into the bank account of the holder of the notes and no person will get the redemption services using an account other than his own. However, in a letter that is issued on September 19th, 2020, NBE has allowed the deposit of the money into an account that is opened or is opened by power of attorney, the agent has obtained before September 14th 2020. In the same letter, NBE has stated that the agent who wishes to open an account in the name of the principal is required to present the original and copy of the power of attorney given to him/her before September 14th, 2020, the original and copy of his/her valid ID card.
Redemption work of the old notes exceeding Birr 100,000 (one hundred thousand) shall be completed within 30 (thirty) days from the date of the commencement of the redemption. This same stand is iterated by the letter of NBE. The Directive also gives the government the power to confiscate money held by a person that is more than Birr 1.5 million.
As stated under Article 10 of the Directive, any person who violates any of its provisions is punishable as per the provisions of Articles 26 (1) (d), 26 (2) (a) and 26 (2) (b) of Proclamation No. 591/2008, which includes the confiscation of the property with which the offense is committed, a fine of up to Birr 100,000 (one hundred thousand) and rigorous imprisonment of up to 15 (fifteen) years. The fine can be as high as threefold of the value of the property but in no way less than Birr 100,000 (one hundred thousand), where the provision of Article 26 (2) (b) of Proclamation No. 591/2008 is violated.
Please see the attached Directive and the subsequent letter of NBE for further details.
Posted on September 20, 2020, and updated on September 28, 2020
| File | Description | File size |
|---|---|---|
 Amendment to Directive on Change of Currency.jpg | 1238 kB | |
 Legal Tender Currency Notes Redemption Directive.pdf | 1681 kB | |
| Legal Tender Currency Notes Redemption Directive_Amharic.pdf | 3228 kB |