Printing of new Somali currency notes will begin soon.
The central bank is preparing to change the Somali currency.
The Central Bank of Somalia is preparing to change the Somali currency, the shilling (SH), for the first time in decades, following hyperinflation that has crippled the country's economy since the collapse of the central government. In this new development, the 1,000 SH banknotes, first issued in 1991, will be replaced with new ones featuring a different design, according to Deputy Governor of the Central Bank, Ali Yassin.
According to Mr. Ali Yassin, the Somali government is seeking to replace banknotes with higher-quality ones in order to revitalize the economy and cooperate effectively with the International Monetary Fund and the World Bank.
Reasons for postponing the new banknotes
A year ago, the former governor of Centra Bank, Mr. Abdul Salam Omar Hadli, said that banknotes printed by a German company were stored in a warehouse in Sudan.
Abdelsalam said the Sudanese government paid $49 million to a German company to print the new Somali currency notes. He added that the new banknotes have special security features that make them more secure than the old notes.
He said: “The upcoming banknotes contain a number of security features that make copying or counterfeiting them extremely difficult.”.
The former governor explained that the currency in Somalia is worthless at the moment because the federal government and the various regional states are not working together.
The World Bank estimates that over 98% of banknotes in circulation in Somalia are counterfeit, according to the IMF. The central bank printed the last banknotes before the government collapsed in 1991.
The new banknote is welcome news, but people are concerned about whether Somalia is ready to start issuing new currency again. The only Somali banknotes currently in use are the 1,000 Somali shilling note, which dates back to before the war, and smaller denominations like the 500, 50, and 20 shilling notes, which have been out of circulation since the start of the conflict. Therefore, it will be important for people to start using the new banknotes as soon as possible.
By June of this year, the Central Bank of Somalia is scheduled to establish regional offices in Garowe, Baidoa, Kismayo, and Dusmaraeb, in addition to Hirshabelle. Prior to the collapse of the state in 1991, the central bank had offices throughout the country where banknotes were stored. These regional offices are expected to facilitate tax collection and cash storage as the country works to establish new currency standards.
Mobile money transfer systems are popular in Somalia now because they are a way to easily pay your bills, buy things, or send money to other places.
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