Eritrean nakfa

{{Short description|Currency of Eritrea}}

{{for|an earlier currency of Eritrea|tallero}}

{{Infobox currency

| local_name1 = ናቕፋ

| local_name_lang1 = ti

| local_name2 = ناكفا

| local_name_lang2 = ar

| image_1 = Banknotes of Eritrea 02.JPG

| image_title_1 = Nakfa banknotes

| iso_code = ERN

| date_of_introduction = 15 November 1997

| using_countries = {{ERI}}

| inflation_rate = 9%

| inflation_source_date = April 2017{{citation |url=http://www.imf.org/external/datamapper/PCPIPCH@WEO/OEMDC/ERI |title=Inflation rate, average consumer prices |publisher=IMF|date=April 2017|access-date=9 October 2017}}

| pegged_with = U.S. dollar = 15 nakfa

| subunit_ratio_1 = {{frac|1|100}}

| subunit_name_1 = Cent

| symbol = Nfk

| symbol_comment = (Latin script)
{{big|1=ናቕፋ}} (Ge'ez script)
{{big|1=ناكفا}} (Arabic script)

| used_coins = 1, 5, 10, 25, 50 cents, 1 nakfa

| used_banknotes = 1, 5, 10, 20, 50, 100 nakfa

| issuing_authority = Bank of Eritrea

| issuing_authority_website =

}}

The nakfa (ISO 4217 code: ERN; {{Langx|ti|ናቕፋ}} naḳfa, or {{Langx|ar|ناكفا}} or نقفة nākfā) is the currency of Eritrea and was introduced on 15 November 1997 to replace the Ethiopian birr at par. The currency takes its name from the Eritrean town of Nakfa, site of the first major victory of the Eritrean War of Independence. The nakfa is divided into 100 cents.

The nakfa is pegged to the US dollar at a fixed rate of US$1 = ERN 15. At earlier times,{{when|date=March 2019}} it was officially pegged at US$1 = ERN 13.50. The currency is not fully convertible, so black market rates available on the streets typically offered a rate of 15 nakfas per dollar.{{citation |title=A Broke Nation |year=2004 |issue=Oct |url=http://www.officedubac.sn/IMG/pdf/Anglais_G_1er_grpe_R.pdf |publisher=Université Cheikh Anta Diop de Dakar |access-date=22 October 2016 |archive-date=22 October 2016 |archive-url=https://web.archive.org/web/20161022154819/http://www.officedubac.sn/IMG/pdf/Anglais_G_1er_grpe_R.pdf |url-status=dead }}{{Update inline|date=July 2018}}

Between 18 November and 31 December 2015, the Bank of Eritrea began replacement of all nakfa banknotes. The banknote replacement initiative was designed to combat counterfeiting, the informal economy but primarily Sudanese human traffickers who had accepted payments in nakfa banknotes in exchange for transporting would-be migrants primarily to Europe. A consequence of this was substantial amounts of the country's currency existed in vast hoards outside of Eritrea.

The plan to replace the country's currency was top secret and designed to prevent human traffickers bringing their funds back in time to exchange for the new banknotes.{{citation|title=Eritrea won't shorten national service despite migration fears |year=2016|issue=26 Feb |url=http://sallina.com/?p=3841 |publisher=Sallina News |access-date=22 October 2016}} On 1 January 2016 the old nakfa banknotes ceased being recognized as legal tender, rendering external stockpiles of currency worthless.{{citation|title=Meet the New Eritrea Nakfa Bank Notes |year=2015|issue=29 Nov |url=https://www.tesfanews.com/new-eritrea-nakfa-currency-notes-slides/ |publisher=Tesfa News |access-date=22 October 2016}}

The current series of banknotes is the artwork of an Afro-American banknote designer, Clarence Holbert,{{citation|title=Designing Eritrea's Money was 'Dream Come True' |year=2015|issue=26 Jan |url=https://www.tesfanews.com/designing-eritreas-money-was-dream-come-true/ |publisher=Tesfa News |access-date=22 October 2016}} and printed by German currency printer Giesecke & Devrient.{{citation|title=Currency and exchange facilities |year=2015|url=http://www.eritrea.be/old/eritrea-nakfa.htm |publisher=Eritrea Be |access-date=22 October 2016}}