In the 18th and 19th centuries, Maria Theresa thalers and blocks of salt called amole tchew (አሞሌ) served as currency in Ethiopia.

The Maria Theresa thaler was officially adopted as the standard coin in 1855, although the Indian rupee and the Mexican dollar were also used in foreign trade.

The talari, equivalent to the Maria Theresa thaler, was divided into 20 ghersh (also guerche or gersh, from the Ottoman qirsh) or 40 bessa (a small copper coin).

The Ethiopian coinage gained acceptance only gradually, and the Bank of Abyssinia imported Maria Theresa thalers.

Emperor Haile Selassie bought out the Bank of Abyssinia in 1931 for £235,000 in order to make it a purely Ethiopian institution.

At the same time, the currency was decimalized and token nickel and copper coins were introduced, the birr becoming equal to 100 metonnyas (often written matonas).

In an effort to increase the use of Italian paper money, the exchange rate for silver coins (Maria Theresa thalers) was raised to 4.50 lire, then to 5.00, and eventually, in stages, to 13.50.

Special notes with a red overprint were authorized for Italian East Africa on 12 September 1938, and a large quantity was printed.

The East African shilling became the money of account on 1 July 1942; it eventually became the sole legal tender and remained so until 1945.

In 2024, Ethiopia undertook reforms, including the liberalization of its foreign exchange market, leading to the floating of the Ethiopian Birr.

The National Bank of Ethiopia (NBE) spearheaded this initiative, receiving $13.5 billion from international partners to support the transition.

This funding, primarily from multilateral lenders like the IMF and World Bank, aimed to the adoption of a flexible exchange rate system.

Concurrently, Ethiopia secured over $15 billion in financial support from the World Bank, including direct grants, debt extensions, and investment commitments.

The most recent issues are: The dates, like the rest of the legend, appear in Amharic, the official language of Ethiopia.

The National Bank of Ethiopia was established by imperial proclamation 207 of 27 July 1963, and began operation on 1 January 1964.

In just a month, Ethiopian banks took in 14 billion birrs (around $500 million) into their system, which is expected to increase towards the end of 2020.