Business
Somaliland to replace all Somali Shilling
April 26, 2011 · 11 Comments
HARGEISA — Somaliland’s central bank will begin exchanging 7 billion Somali shillings ($4.37 million) of notes for its own currency next month as part of a plan to stop using the Somali currency in the autonomous region by mid-June.
“We are preparing for the Somaliland shilling to be used all over Somaliland,” Central Bank of Somaliland Governor Abdi Dirir Abdi said in an interview on April 24 in Hargeisa, the capital. Abdi said the rate at which the currency will be exchanged has yet to be determined.
Somaliland, a former British colony, declared independence in 1991, following the ouster of former Somali dictator Mohammed Siad Barre. No sovereign state has formally recognized the region as independent.
The Somaliland shilling was introduced in October 1994, according to the government’s website. At the end of 2008, the currency was valued at 7,500 per dollar, it said. The Somali shilling is currently valued at 1,601 against the U.S. currency according to Bloomberg data.
The central bank of Somaliland expects lawmakers to enact a draft banking law by June enabling commercial lenders to extend credit to borrowers for the first time, Abdi said last month. Somaliland is in talks with Banque pour le Commerce et l’Industrie, based in neighboring Djibouti, and two other lenders to grant them banking licenses, Abdi said. The nation of 3.5 million people currently has no banks.
By Mohamoud Ali
–Editors: Paul Richardson, Alastair Reed.
To contact the reporter on this story: Mohamoud Ali in Hargeisa via Nairobi at pmrichardson@bloomberg.net.
To contact the editor responsible for this story: Paul Richardson in Nairobi at pmrichardson@bloomberg.net.
Bloomberg | 26 April, 2011
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By Hassan Ali
Tags: Bank, Currency, Shilling, Somalia, Somaliland
Readers Comments (11)
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hehehehe Somali Shilling which Somaliland introduced to Somalia, before Somaliland they used the Italian Lira or "rupia". Somaliland introduced the shilling to South Somalia in 1962..Somaliland adopted the Shilling from the British in 1921.
Now Somaliland should once again lead the way and stop the whole shilling including the SL Shilling and we should have a new currency and a new name—something from our language. We should dig back history and see what we use to call the currency we had before the Shilling.
Somaliland shilling which is not recognized is worth 1,600 against the Somali Shilling (in another words 1 Somaliland Shilling is 1,600 Somali Shilling). Just wait until we open those banks and our currency circulates throughout Somaliland. At the moment parts of Burao and eastern parts of Somaliland including Las Anod use the old Somali shilling, once we replace it, we have got rid off the last thing that reminds us of Somalia and their warlords. Somaliland is open for business!
This is a very welcomed decision and if this government pulls off this and replaces the Somali Shilling within its first year it would be amazing! But I won't believe it until i see it actually happen!
The use of our currency should be enforceable by law and its exchange rate begged to the prize of gold to avoid manipulation and mismanagement by ill-educated officials. Also the government should not just reprint the old denominations but instead get rid of the entire current money for the introduction of newer more valuable smaller denominations. To pay for a cup of tea we need not carry our money on a wheelbarrow.
I meant pegged.
Using the SL currency throughout the 6 Regions of the Somaliland Republic as reported
by Governor of the Central Bank MR. Abdi Dirir Abdi by which the previous Regimes failed
to implement since 1993-2010 is finally being implemented in may 2011 during such short
period that the new ruling Kulmiye party have been in office. With all the other progresses this
much awaited project is yet another good example that the Govt. in power is really working hard
to deliver their Kulmiye Party promises. Say hip hip horay.
Cheers.
I wonder how Somaliland would look like if this government would have been ruling this country since 93-2010. I belive it would have turned for the better. But much of the government success is thanks to the private sectore and somalis who are investing in SL. I would like to see more of a multi culturale SL and not only Somalis (from south and north). The future will tell if Somaliland would be more of an middle income country or not when im inshallah are done with my education and worked for few years and thats is like 10 years gonna be an old man of 30 year old. But only Allah can tell, and i dont wanna hear or see more clan debatt here we are all muslims first then somalis. Peace and love guys and less ignorance PEACE!
The Somali Shilling is 5 times stronger than the Isaaqistan shilling, so good luck.
Keep drinking that kool aid…loser!!!
it's a good Thing to Have Your own Currency to manage your economy
Let the Somali Shilling be used in Somaliland, what difference does it make since Somaliland has no bank. I think it will be a good idea for Somaliland to seek recognition first before worrying about replacing Somali shillings since no bank in the world will deal with a government thats not recognized.
As neutrally opinionated as I can be, I think Somaliland should carefully consider their aim towards admitting multimillion foreign companies into their countries. Even though it might seam to start out peacefully, foreign corporation investments have robbed every African country of their resources and forced the majority of the nationals into becoming the lower class population. They have no aim but to rob your resources and leave you dry. Although it looks like they are helping your people and your nation right now, in the long run all hell will break loose. Somaliland is an oasis of Culture, Treasure and Beauty. Although it might take time, with the wonderful job that the government of Somaliland has done without any recent foreign recognition, the country can slowly evolve into a model nation for all others as a self sustainable nation and unreliable on western economical and global influence. With the presence of agriculture, various forms of natural energy, and huge abundance of minerals, this nation is the only hope left for mankind's freedom from monetary slavery. It takes but one nation!