Ethiopia had two currencies before the birr. Its first currency was called the Menelik talers, introduced in 1894. During the Italian occupation (from 1934 to 1942), the lire was the official currency of Ethiopia. The Ethiopian dollar followed.
Next to Niger, Ethiopia is the poorest country in the world. It has had to import more food and fuel for a growing population. The government decided to devalue the birr to address its trade deficit.
In September 2010, Ethiopia's Central bank devalued the birr by about 17 percent. Its value changed from about 13.5 birr to $1 US to 16.5 birr, according to VOA News. The devaluation is part of a strategy to make Ethiopian products more competitive in the global marketplace.
