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Mesob
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Posts: 2589
Joined: 23 Dec 2013, 21:03

Eritrea's Currency the Nakfa will be replaced

Post by Mesob » 05 Oct 2025, 17:07

Eritrean government is preparing to replace its currency Nakfa before the year 2026. Not only this, the new Nakfa currency exchange rate will be at a new standard of US$ 1 to Nakfa 10. That is from the current US $ 1 to Nakfa 15. This means, in the new standard exchange rate the Nakfa will appreciate by 30%. The rumour mill in Asmara is that the government has sensed the business people are hording the Nakfa at home and they have also seen some flow of forged Nakfa in Zoba Debub on the Tigrayan border, probably orchestrated by the Abiy Ahmed government to sabotage the Eritrean economy.
This is also one way of preventing high inflation and the government benefiting from the high flow of remittance from diaspora Eritreans. This does not explain how the Eritrean economy will overall benefit. There is no doubt, the 275,000 Eritreans serving in the national army will benefit because their limited army salary will be worth more American dollar or Euro currency, thereby increasing their purchasing power. Some hope the price of consumer goods may also decrease but did not explain its economics.
This is one possibility of preparing for a long war of attrition against Ethiopia's Abiy Ahmed, as the small Eritrean economy is very vulnerable.
This way or that way, you have heard this ahead of many Eritreans that Eritrea is issuing a new Nakfa currency to replace the current one circulating in the land.
Do you know that Eritreans are allowed to take out any amount of hard currency from the country but not allowed to take with them more than 1000 Nakfa? A strange law only in Eritrea.



sesame
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Posts: 7893
Joined: 28 Feb 2013, 17:55

Re: Eritrea's Currency the Nakfa will be replaced

Post by sesame » 05 Oct 2025, 17:28

Another idiotic attempt! Why should Eritrea change its currency!

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