Somalia Rebuilds Monetary Sovereignty with Plan to Restore National Currency
Somalia is taking steps to restore its national currency, the Somali shilling, after relying on the US dollar for over three decades. The Central Bank of Somalia says preparations have reached an advanced stage.
The country's currency crisis dates back to 1991 when the collapse of Siad Barre's government and subsequent civil war made it impossible for the central bank to issue new currency. As a result, counterfeit notes spread and the US dollar gradually took over commerce, savings, and electronic payments.
The Central Bank is finalizing reserve-management and foreign-exchange regulations as part of its efforts to rebuild monetary sovereignty. Parliament is considering amendments for a proposed Currency Board Arrangement, which would help Somalia regain control over its currency.