Wednesday January 18, 2023
Central Bank Deputy Governor Ali Yasin Wardheere
Mogadishu (HOL) - Somalia's central bank said it plans to introduce a new currency for the Somali shilling in 2024 to combat rampant counterfeiting and excess circulation.
The Central Bank Deputy Governor Ali Yasin Wardheere said that newly redesigned notes would replace the 1,000 shilling notes the federal government printed before the collapse in 1991.
Counterfeit Somali shilling notes were produced by various groups, including criminal organizations and warlords, who used fake currency to fund their operations and gain control over the local economy. This widespread counterfeiting of the Somali shilling severely impacted the economy, as it further devalued the already weak currency and made it difficult for ordinary Somalis to afford basic necessities.
Wardheere said that the central bank plans to open up offices in each federal member state by June. These new branches will assist in collecting taxes abe become the main fiscal agent for the regional states.
The Central Bank said it has been working with the IMF and World Bank since 2018 in anticipation of the rollout.