Historical Development of Money and Banking in Eritrea from the Axumite Kingdom to the Present

Rena, Ravinder (2006): Historical Development of Money and Banking in Eritrea from the Axumite Kingdom to the Present. Published in: African and Asian Studies , Vol. 6, No. 1-2 (10 June 2007): pp. 135-153.

Abstract

The development of money is an abstract of the history of civilization. Financial institutions encourage saving habit among the people by receiving deposits from the public in various forms. The Axumite kings were the first to mint coins in the African Continent. The aim of this paper is to explore the lessons learned from the different historical developments in the country and the region. The paper discusses the origin of banking system in Eritrea. It highlights the historical evolution and growth of money and banking in Eritrea during the Axumite, Italian, and the British, Ethiopian periods. It also provides the chronological development of money and banking from historical times to the post-independent Eritrea. It also deals with the existing banking institutions in the country. The paper makes an extensive use of related literature in enlightening the money and banking system in Eritrea during the historical period. It ends with summary and concluding remarks.

• Item Type: MPRA Paper
• Language: English
• Keywords: Money; Banking; Eritrea; historical development; Banking institutions
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O11 - Macroeconomic Analyses of Economic Development; N - Economic History > N0 - General > N01 - Development of the Discipline: Historiographical; Sources and Methods; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E58 - Central Banks and Their Policies; N - Economic History > N2 - Financial Markets and Institutions > N27 - Africa ; Oceania; G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages

References

Commercial Bank of Eritrea. Annual Reports (1998, 2003, 2005) and other unpublished Documents. Asmara: Commercial Bank of Eritrea.

Commercial Bank of Eritrea. Credit Policy. Asmara: Commercial Bank of Eritrea, 1994.

Crossely, J and Blandford, J. The DCO Story: A History of Banking in Many Countries 1925 – 1971. London: Barclay Bank International Limited, 1975.

Davies, Glyn. A History of Money from Ancient times to the Present Day. Cardiff: University of Wales Press, 2002.

Eritrean Development and Investment Bank (EDIB). Annual Reports, Brochures and other unpublished documents. Asmara: Eritrean Development and Investment Bank.

Gebereegziabhier, S. “Basic Concept of Banking and Banking Practices in Eritrea.” In Asmara Commercial and Business Training Institute (1999) National Workshop on Development of Finance, Banking and Insurance in Eritrea. Teraimni: Green Island Hotel (7-8 May 1999) Compiled Papers of the Workshop.

Government of Eritrea. Proclamation No. 32/1993. Asmara: the Government of Eritrea, 1993.

Government of Eritrea. Macro Policy Document. Asmara: Government Press, 1994.

Government of Eritrea. Financial Institutions Proclamation No. 94/1997. Asmara: the Government of Eritrea, 1997a.

Government of Eritrea. Bank of Eritrea Proclamation No. 93/1997. Asmara: the Government of Eritrea, 1997b.

Government of Eritrea. The Eritrean Financial Sector Performance (1992 - 1996) and Outlook. Asmara: Government of Eritrea, 1997c.

Housing and Commerce Bank of Eritrea. Ten Years of Banking Operation – 1994-2003. Asmara: Housing and Commerce Bank of Eritrea, 2003.

Killion, Tom. Historical Dictionary of Eritrea. London: The Scarecrow Press, inc., 1998.

Longrigg, Stephen, H. A Short History of Eritrea. Westport Conn: Greenwood Press, 1974.

Mauri, Arnaldo. “The First Monetary and Banking Experiences in Eritrea.” African Review of Money, Finance and Banking, no. 1-2(1998).

Mauri, Arnaldo. Eritrea’s Early Stages In Monetary And Banking Development. Working Paper no. 28. – Dipartimento di Economia Politica e Aziendale, Università degli Studi di Milano Ottobre, Italy, 2003.

“National Bank of Ethiopia.” History of Banking In Ethiopia [cited 1 July 2002a] Available from http://www.ethemb.se/bank.con.htm]

“National Bank of Ethiopia.” History of Banking and Money In Ethiopia. [cited 1 September 2002b ] Available from http://www.telecom.net.et/~nbe/history-notesand coins.htm

Pankrust, Richard. An Introduction to the Economic History of Ethiopia. London: Lalibela House, 1961.

Pankrust, Richard. “The History of Currency and Banking in Ethiopia and in the Horn of Africa from the Middle Ages to 1935.” Ethiopia Observer, no. 4. (1965).

“Pankhurst, Richard.” The Bank Of Abyssinia’s Bank Notes. [ cited 1 Septemeber 2002] Available from http://www.archives.geez.org/addistribune/1998/12/18-12-98/hist-324.htm

Rena, Ravinder. Money, Banking and International Trade. Asmara: Asmara Commercial College (Unpublished Manuscript), 2004.

Rena, Ravinder. A Comprehensive History of Eritrea. Asmara: Millennium Publishers, 2005.

Rena, Ravinder. Financial Institutions in Eritrea. Dar Es Salaam: New African Press, 2006.

Sergew, Hablesellasse. Ancient and Medieval Ethiopian History to 1270. Addis Abeba: United Printers, 1972. Stuart Munro-Hay. Axum: An African Civilization of Late Antiquity. 1991.

Sutton, Jacky. “Eritrean Currency Through The Ages” Eritrea Horizons, 2 (1), (2003).

Trevaskis, G.K.N., Eritrea: A Colony in Transition. London: Oxford University Press, 1960.

Tschoegl A.E., “Maria Theresa’s Thaler: a Case of International Money.” Eastern Economic Journal, 27 ( 4), ( 2001).

Von Eije, H., M. Fishazion, and C. Lutz. “Accessing Bank Credit in Eritrea: Bottlenecks for Small Firms and the Commercial Bank of Eritrea.” Journal of Eritrean Studies l (1), (2003): 59-74.

World Bank. Eritrea: Revitalizing Eritrea’s Development Strategy. Washington, D.C.: World Bank, 2002.

World Bank Document. Eritrea: Options and Strategies for Growth. Report No. 12930 – ER, East Africa Department, Washington, D.C.: The World Bank, 1994.