Somalia Seeks to Rebuild Currency Sovereignty After 35 Years of Dollar Domination

Somalia is taking steps to restore its national currency, the Somali shilling, after 35 years of relying on the US dollar. The Central Bank of Somalia says preparations for this move are at an advanced stage.

The country's currency crisis began in 1991 when the collapse of Siad Barre's government led to a civil war that effectively ended the central bank's ability to issue new currency.

Since then, the US dollar has become increasingly dominant in commerce, savings, and electronic payments. The country's large diaspora also sends billions of dollars home through money-transfer networks like hawala, further reinforcing dollarisation.