The National Bank of Ethiopia (NBE) accepted offers last week from three European companies which responded to the bank’s desire to print 50 birr and 100 birr notes.

The bank wants to order the printing of notes with a total value of 52 billion birr to replace all-in notes under circulation. It will be the largest order ever, more than 90 percent of what it had printed last year.

Out of the 52 billion birr notes to be printed 46 billion birr will be printed in 100 birr notes, while the remaining 6 billion birr will be printed in 50 birr notes. The notes are to be printed and delivered in four month time.

Technical offers from De La Rue Currency of the United Kingdom, Giesecke & Devrient of Germany and Francois-Charles Oberthur of France were accepted on Monday while an offer from a Dutch company was disqualified.

According to the National bank of Ethiopia, about 21.5 billion birr worth of 100 birr notes and 3.4 billion birr worth of 50 birr notes were in circulation at the end of June 2010.

The IMF had said in June that one of the major causes of inflation in Ethiopia was "excessive" growth in the supply of money, which expanded 35 percent at the end of March.

Source: Fortune