Residents and business owners in the Ethiopian capital are expressing growing concern over the deteriorating physical quality of 5 and 10 Ethiopian Birr banknotes. The rapid “aging” and fragility of these specific denominations are reportedly causing significant disruptions to daily transactions, leading to frequent disputes between service providers and customers across the country.
According to commuters and traders in Addis Ababa, the current notes in circulation have become excessively thin and prone to tearing. This physical degradation has reached a point where many taxi drivers, street vendors, and retailers are increasingly hesitant—and sometimes flatly refuse—to accept damaged or heavily worn 10 and 5 Birr notes, fearing they will be unable to use them for future change or deposits.
The issue has become a flashpoint for social friction, particularly in sectors involving low-value, high-frequency transactions. Public transport hubs and retail kiosks have become common sites for verbal altercations. “When a note is taped or slightly frayed, it becomes a battle to get it accepted,” one resident noted, highlighting that the lack of durable currency is slowing down the pace of commerce in Ethiopia’s busiest districts.
In response to these challenges, citizens are calling on the National Bank of Ethiopia (NBE) to take decisive action. Proposed solutions from the public include a large-scale replacement of mutilated notes or increasing the distribution of metal coins for these smaller denominations. This comes at a time when the Ethiopian government has recently announced plans to localize currency production through Ethiopian Investment Holdings (EIH) to improve the quality and security of the Birr.
Ensuring the physical integrity of legal tender is essential for maintaining economic efficiency and public trust in the Ethiopian monetary system. As frustration mounts, stakeholders emphasize that swift intervention by the central bank—whether through improved printing standards or broader coin circulation—is necessary to streamline daily trade and prevent further logistical bottlenecks in the informal and transport sectors.