"On September 14, 2020, Ethiopia announced the introduction of new banknotes of 10, 50, 100, and 200 birrs, with the latter being issued into circulation to meet the needs of issuing a high denomination note to tackle inflation. ... Companies and individuals can cash only up to 1.5 million birrs ($41,000)".
Feeling very nostalgic. When we were in Ethiopia, for one dollar we got 8.33 birrs and now we get 33.33 birrs. That means the Ethiopian birr has been devalued by 400%. Very high level of inflation.
At the same time in 2002, for Rs 43.50 (one dollar we got 8.33 birr, which means one birr was Rs 5.22. The magic calculation was 1 birr meant 5 rupees.
Now for 73.51 rupees (one dollar), we get 33.33 birr that means for one birr we will get 2.20 rupees. Now Ethiopian birr = 2 Indian rupees.
We have seen the solid strength of birr. One kg of rice was 2 birr. 5 eggs for 2 birr, 15 centimes for a shai. 3 birr for a bayenethu, 15 birrs for dorovat and injera, 60 centimes for injera, 250 birr airfare from Addis to Bahirdar for Ethiopians and R.P holders, and 650 birrs for foreigners. 15 to 20 birr cab fare from Tinbot Haya airport to Kable 7 in Bahirdar. Travel from Bahirdar to Addis Ababa by Toyota Land Cruiser was only 100 birr!
To put things in perspective airfare from Addis to Bahirdar is now Rs 9000/- or 4,500 birrs! That is a jump of nearly 20 times in airfare! In contrast, Indian fares have more or less remained the same in the last 15 years without inflation adjustments (before the corona pandemic) for domestic flights.
Goodbye dear One birr, five birrs you will be missed solely. You will always be a smiling boy in my pocket. Go in peace, my little friends!
Of course, I will miss 5, 10, 25 and 50 centimes too. Life moves on and the only constant in the world is change.
