Eritrea shared the Ethiopian currency, the birr, until November 1997 when it introduced its own currency, the nakfa. The NBE adopted a fixed exchange rate for the first 6 months and then switched to a floating exchange
|Exchange rates: Eritrea|
|nakfa per US$1|
|SOURCE: CIA World Factbook 2001 [ONLINE].|
rate , that is, a rate determined by supply and demand. There are no exchange restrictions for the Eritreans or foreigners. The nakfa remained stable between 1997 and 2000, during which time it depreciated slowly against the U.S. dollar, declining from 7.2 to 9.5 nakfas to US$1. This minor fluctuation had no noticeable impact on the pace of economic activity or on the purchasing power of the population.