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News headlines from Somaliland, Somalia and the world.

Somaliland passes central banking law, eyes foreign banks

April 23, 2012 · 2738723 Comments2012-04-23+17%3A19%3A43goth+Mohamed

HARGEISA — Somaliland has passed a law that formally establishes a central bank, and is now poised to pass another to set up commercial banks in a bid to attract foreign lenders to start operating in the self-declared country by 2013.
Somaliland, a breakaway state in the northeast of Somalia, remains unrecognised internationally.

It has no formal banking sector and its people rely heavily on remittances from diaspora communities in Europe, North America and the United Arab Emirates, as there are no ATMs or loan facilities.

“The President has signed the Central Banking Act into law,” Abdi Dirir, governor of Somaliland’s Central Bank, told Reuters on Monday.

“We are expecting the Commercial Banking Act to be passed in the next three to four months,” Dirir said.

Yemeni state-owned bank CAC, Djibouti-based Salaam African Bank, and Banque de Depot de Credit Djibouti, a subsidiary of Switzerland-headquartered Swiss Financial Investments, have all approached Dirir about commencing operations in Somaliland.
“Once the commercial banking laws are in place, we hope investors will be attracted by our free market,” Dirir said.

Reuters

Monday, April 23, 2012

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By goth Mohamed

Tags: Central Bank, commercial banks, Investment, legislation, Somaliland news

osman5 says:

Great news for Somaliland, not so good the folks whose businesses rely on remittance services such as Dahabshil because if all banks mentioned in the story open their doors as of the next year and beyond, it'd be a lot easier to wire money from point A to B anywhere in the world.. Perhaps that's why Dahabshil has been rigorously diversifying his business portfolios to a wide range of venues lately.

Since Dahabshil has the know-how skill sets of money money management administrations.
I wonder though why Dahabshil did not consider including a banking system in his business diversification, that'd be a smarter move. I wouldn't mind personally of having a choice of dealing with a private bank owned by a Somalilander among my banking options.

Osman Qaal

2:27 pm on April 23, 2012

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- Beeldeeq says:
  
  Don't you know that in 2009, Dahabshiil made banking history and launched the first ever debit card in Somaliland and the following year opened an Islamic bank in Djibouti? I quoted this from a recent article about Dahabshiil's vital service for African Community which has been posted on SLP.
  
  Any way, this is a good news for Somaliland and particularly for business community.
  
  3:55 pm on April 23, 2012
  
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mohamed cheers says:

Good news.
Cheers.

3:31 pm on April 23, 2012

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khalid says:

Mashalah,

I cant wait to transfer money from my HSBC to a somaliland based bank account.

Great News,

4:19 pm on April 23, 2012

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- ayanle says:
  
  Somaliland is one do you understand the meaning of one that means we all are 1 people
  "one somaliland" one love.
  
  1:05 am on April 24, 2012
  
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Gelle Maalim says:

You will remit your money to the corrupted government of Hargaysa which the only language they understand is looting and corruption. Your money will go into wrong hand and soon there will be clan war in Somaliland.

5:12 pm on April 23, 2012

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- mohamed cheers says:
  
  Back off..isku bax kanuna xagu ka yimid kkkkk
  Cheers.
  
  7:15 pm on April 23, 2012
  
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ComeAgain says:

Way to go! Dont hate folks just admit that this man has done something you couldnt do, take note and build something for yourself before hating!

9:24 pm on April 23, 2012

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Omer Hussein Dualeh says:

The name Gelle Maalim shows he is not from Somaliland and one of those who will cry behind us, until the doomsday. Furthermore, we should avoid a family owned bank and create a collective banking that will flourish, since our people are good entrepreneurial.

I am not against anyone, but I prefer a bank that whoever has some, can contribute its existence, and not a bank that we will blame tomorrow. A foreign investment is also needed in this, to make easy for us deal with the international community.

11:30 pm on April 23, 2012

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inayuusuf says:

First of all, Gelle Maalim's vomit, whoever he is, is irrelevant and deserves not our attention.

Among us are those sensitive to Dahabshil. For instance Omer Hussein Dualeh says blatantly “we should avoid a family owned bank”. Dear Omer, it is a free market and everyone is welcomed including Dahabshil. Yet everyone is free to choose whichever bank (s)he likes. It’s as simple as this and no need to dictate any Somalilander what (s)he has to do with (s)his money.

12:02 am on April 24, 2012

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Omer Hussein Dualeh says:

Inayusuf. You always jump to the wrong conclusion. Avoid such unwanted comments and just give your opinion here.

12:11 am on April 24, 2012

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HMObsiye says:

Every positive step that Somaliland takes, is a step towards future development of this new nation.

This step, is a win, win situation for all Somalilanders

12:16 am on April 24, 2012

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inayuusuf says:

Omer Hussein Dualeh: That is my opinion pal, and the fact that it's unwanted to you is irrelevant. If Dahabshil is able to stand in the face of the international giants of the banking field, let him go for it.

2:55 am on April 24, 2012

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Gobaad says:

the Hawala is good its home grown biz ,the last thing we need is international banks taking biz from our Hawalas

4:28 am on April 24, 2012

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- Gobaad says:
  
  Wrong, that is not my comment liar. Get a life moron!
  
  9:32 am on April 24, 2012
  
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Kayse says:

Dirir stop lying Somaliland is not so free market. How is it free when you so called government gave exclusive monopoly license only to the big 3/4? For instance people can not import rice, sugars, wheat freely because its reserved for "omar company" or Deero or Dahabshiil….

No big banks will come to Somaliland because there isn't a lot of profit there and the big banks are currently struggling around the world…they have became broke or greedy and super rich…

Somaliland banking sector will soon say its only for DAHABSHIIL…same old.

7:05 am on April 24, 2012

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inayuusuf says:

I don't think any giant banking institution will hesitate to enter Somaliland market after we put our resources of fossil fuels to use. I believe it's a matter of time.

7:59 am on April 24, 2012

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Gobaad says:

This is a good news for Somaliland. But from what I remember "business international class", in order to attract businesses and investors a country needs to build good infrastructure: basic facilities, services needed for the functioning of the community, such as banks, transportation and communications systems, a viable national economy, roads, water storage, and power lines, and public institutions, post offices, ports, and airports. Otherwise, without these things in place, it will be hard to attract any viable investors. But we can achieve all those one at a time, God-willing.

9:56 am on April 24, 2012

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Gobaad says:

Correction: … I remember from my " business international class", that is.

9:59 am on April 24, 2012

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Kayse says:

Some people get excited too early and need to keep in mind this quote: “Young people on a lark might keep in mind that all birds, except cuckoos, build their nests before hatching their eggs”.

I see a lot of you already celebrating. No banks have established their foundations. And do keep in mind its not about who opens what, its who sustains what.

Many might open banks but what good is it if they all close it tomorrow? I rather not them open any until society is ready then for them to open then shut it down and send a negative message to the rest of the community and wider world.

10:05 am on April 24, 2012

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Omer Hussein Dualeh says:

Brother Kayse you gave Inayussuf exactly what he was looking for and want, when you surrendered to Dahabshiil in your last note. He gallantly guard the premises.

9:42 pm on April 24, 2012

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Barwaaqo says:

Do yo know a millionaire is among us commenting on this forum? I am very good detective please employ me I would be able to translate English into Somali.

3:14 am on April 25, 2012

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Gobaad says:

Barwaaqo, I know one business man among us, but I don't how wealthy he is. Does he located inside or outside Somaliland?

9:16 am on April 25, 2012

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