Eritrean Nakfa
ናቕፋ
Currency Code
ERN
ISO 232
Symbol
ERN
Native: Nfk
Decimal Digits
2
Rounding: 0
Countries
ER
Using this currency
Currency Units
Major Unit
Name: nakfa
Symbol: Nfk
Minor Unit
Name: cent
Symbol:
Value: 0.01
Banknotes
Frequently Used
1 Nfk5 Nfk10 Nfk20 Nfk50 Nfk100 Nfk
Coins
Frequently Used
1 cent5 cent10 cent25 cent50 cent1 Nfk
Plural Forms
English Plural
Eritrean nakfas
Native Plural
ናቕፋ
Overview
The Eritrean Nakfa is the currency of Eritrea, introduced after independence in 1997. It is managed by the Bank of Eritrea and faces significant challenges due to the country's isolated economy and limited international trade relationships.
Economy
- Eritrea is a member of AU, IGAD, Arab League (observer).
- Main industries include: Food processing, Beverages, Clothing and textiles, Light manufacturing, Salt, Cement.
- Eritrea is part of the World Trade Organization.
- Imports are machinery, petroleum products, food, manufactured goods.
- Major exports include gold, livestock, sorghum, textiles, food, small manufacturing.
- GDP: $2.1 billion (2017 est.).
- GDP per capita: $585 (2017 est.).
- Unemployment rate: 8.6% (2013 est.).
- Inflation rate: 9% (2017 est.).
- Main trading partners: China, South Korea, Egypt, Turkey, Germany, Saudi Arabia.
- Trade agreements: Limited due to international sanctions, Bilateral agreements with neighboring countries.
History
- Previous currencies used: Ethiopian birr, Italian lira (colonial period).
- The nakfa was introduced in 1997, three years after Eritrea's independence from Ethiopia. It replaced the Ethiopian birr and was named after the town of Nakfa, a symbol of the independence struggle.
- 1997: ERN introduced, replacing Ethiopian birr
- 1998-2000: Border war with Ethiopia
- 2001: Banking reforms initiated
- 2009: UN sanctions imposed
- 2018: Peace agreement with Ethiopia
- 2021: Ongoing economic challenges and isolation
- Exchange rate peg: Officially pegged to USD, but limited convertibility and restricted access.
- Currently pegged to USD (de jure), severely limited convertibility at 15.00 (official rate, limited convertibility).
General Information
- ISO 4217 Code: ERN
- Symbols: ERN/Nfk
- Currency Subunits: 100 cents
- Central Bank: Bank of Eritrea
- Monetary Policy: Fixed exchange rate system with extensive capital controls. Limited international transactions due to economic isolation and sanctions.
- Bills: 1 ERN, 5 ERN, 10 ERN, 20 ERN, 50 ERN, 100 ERN
- Coins: 1 cent, 5 cents, 10 cents, 25 cents, 50 cents, 1 nakfa
- USD Exchange Rate: 15.00 (official rate, limited convertibility)
- Pegged To: USD (de jure), severely limited convertibility at 15.00 (official rate, limited convertibility)
- Capital: Asmara
- Population: 3,748,902 (2023 est.)
- Area: 117,600 km²
- Languages: Tigrinya (official), Arabic (official), English (official), Tigre, Kunama, Afar, Other Cushitic languages
- Time Zones: UTC+3 (East Africa Time)
- Government Type: Presidential republic
- Head of Government: President (head of state and government)
- Independence: May 24, 1993 (from Ethiopia)
- Ethnic Groups: Tigrinya 55%, Tigre 30%, Saho 4%, Kunama 2%, Rashaida 2%, Bilen 2%, Other 5%
- Religions: Eritrean Orthodox 58%, Muslim 37%, Evangelical Lutheran 1.2%, Roman Catholic 1.2%, Other 2.6%
- Literacy Rate: 76.6% (2018 est.)
- Transport: Asmara International Airport, limited road network, railway from Asmara to Massawa, Red Sea ports
- Communications: Limited telecommunications, 7.1% internet penetration, basic mobile network
- Energy: Fossil fuels 99%, minimal renewable energy development
- Countries Using This Currency: Eritrea
- Data Sources: Central Bank: Bank of Eritrea, Economic Data: National Statistics Office Eritrea, World Bank estimates, IMF, Trade Data: Ministry of Trade and Industry, Demographic Data: National Statistics Office Eritrea, Geographic Data: National Meteorological Services Agency, Historical Data: Bank of Eritrea archives
- Last Updated: 2025