São Tomé and Príncipe Currency: Overview, Exchange, and Usage

São Tomé and Príncipe, a small island nation off the coast of Central Africa, uses the dobra (STN) as its currency. While cash remains the primary payment method, digital options are expanding, offering greater convenience for locals and visitors. Understanding the currency’s role in the economy helps travelers and businesses navigate transactions more effectively.

Circulation and Denominations

The dobra (STN) is issued in both banknotes and coins. Common banknotes include 5, 10, 20, 50, 100, and 200 dobras. Coins, available in 10, 20, and 50 centimos as well as 1 and 2 dobras, are less frequently used due to inflation, leading many businesses to round prices to the nearest whole dobra.

Banknotes feature São Tomé and Príncipe’s wildlife and plants, incorporating security features like watermarks, security threads, and color-shifting ink. Coins, made from durable metals, have distinct sizes and textures for easy identification.

The Monetary Authority

The Banco Central de São Tomé e Príncipe (BCSTP) oversees monetary policy, regulates banks, and ensures financial stability. It issues the dobra, controls inflation through interest rate adjustments, and supervises commercial banks.

To align with international banking standards, BCSTP enforces regulations requiring banks to maintain capital reserves and comply with anti-money laundering measures. It also monitors liquidity levels and intervenes when necessary to prevent financial disruptions.

In recent years, BCSTP has promoted digital banking and mobile payments to reduce reliance on cash, particularly in remote areas with limited banking infrastructure. This effort aims to expand financial access and improve efficiency.

Exchange Rates and Conversion

Since 2018, the dobra has been pegged to the euro at a fixed rate of 24.5 STN per 1 EUR, providing stability for trade with European partners. However, fluctuations in the euro can indirectly affect São Tomé and Príncipe’s economy.

Currency exchange is available at banks and authorized exchange offices. While euros and US dollars are sometimes accepted in tourist areas, most transactions require dobras. ATMs dispense local currency, but availability can be inconsistent in rural areas. Credit and debit cards are accepted at some businesses, though cash remains the preferred payment method.

Foreign visitors should compare exchange rates and fees before converting money, as rates vary between banks and money changers. Informal exchange services exist but may offer unfavorable rates or carry the risk of counterfeit notes.

Payment and Settlement Methods

Transactions rely on both cash and digital payments. While cash dominates in markets and small businesses, electronic payments are gaining traction. Mobile money services, offered by telecom providers, enable users to transfer funds, pay bills, and make purchases, particularly in areas with limited banking access.

Larger retailers, hotels, and restaurants have adopted point-of-sale (POS) terminals, though connectivity issues and transaction fees can be challenges. Some banks support international payment networks like Visa and Mastercard, but card acceptance is not universal. For cross-border trade, bank wire transfers remain a key payment method.

Domestic Usage in Commerce

The dobra is the primary medium of exchange across all sectors. While urban areas are seeing more digital payments, cash remains dominant, especially in informal markets, small businesses, and rural communities. Vendors, transportation services, and independent merchants typically accept only dobras, making it necessary to carry local currency.

Larger businesses, including hotels and supermarkets, accept debit and credit cards, but transaction fees and network reliability issues mean many still prefer cash. Mobile money platforms provide a practical alternative for those without traditional bank accounts. Despite these advancements, the informal economy remains significant, reinforcing the continued reliance on cash.