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Eritrea

Eritrean Nakfa (ERN)

67
High
Risk
#6
of 171
Riskier
than 97% of currencies
36
global avg score
$733
$1,000 in 5 years
Impact on Citizens

Citizens need to earn at least 7.9% per year on savings to stay ahead. Money sitting in a regular account is slowly losing value.See savings calculator ↓

Economic Indicators

Inflation Rate
6.4%
Debt to GDP
211.0%
GDP Growth
8.7%
Broad Money / GDP
176.8%

Banking & Stability

NPL Ratio
Not available
Reserve Months
0.8
Current Account
-14.8%
FX Volatility
Not available

Governance & Markets

Rule of Law
-1.4
Black Market Premium
100.0%
Capital Controls
100.0
Peg Fragility
46.6

Currency Structure

Global Currency Role
70.0
FX Regime
hard peg
Data Coverage
83.0%

Savings Impact Calculator

ERN
Holding cash in ERN6.4% inflation
ERN 733−ERN 267 (27% purchasing power lost)
Your ERN 1,000 buys 27% less in 5 years
What if you invested ERN 1,000 instead? (5yr, in ERN terms)
USD-denominated assets gain an additional ~3.4%/yr from expected ERN depreciation vs USD
Hold USD Cash
ERN 1020
+ERN 20
+0.4%/yr net in ERN
S&P 500
ERN 1875
+ERN 875
range: ERN 877ERN 3628
10% USD return + 3.4% FX · ±16% vol
Gold
ERN 1716
+ERN 716
range: ERN 510ERN 4551
8% USD return + 3.4% FX · ±24% vol
Bitcoin
ERN 3490
+ERN 2490
range: ERN 228ERN 20.2k
25% USD return + 3.4% FX · ±54% vol

All values in ERN. USD-denominated assets (S&P 500, Gold, Bitcoin) include an estimated FX gain of ~3.4%/yr based on the inflation differential between Eritrea (6.4%) and the US (~3%). This uses purchasing power parity as a long-run approximation — actual FX movements can differ significantly in the short term. S&P 500 based on 1957-2024, Gold on 2000-2024, Bitcoin on 2015-2024. Past performance does not guarantee future results. Not financial advice.

Data last updated: 2026-08-17

Note: World Bank does not cover this country directly. Data sourced from national statistics and IMF estimates.