After a 32-year absence, Somalia’s central bank makes a perplexing and bursting comeback to the global stage.

BREAKING NEWS: CBS Returns to Global Payments Week After a 32-Year Absence


- Advertisement -

Prepare to be floored as we bring you the latest news straight from Mogadishu. The Central Bank of Somalia has made a triumphant return to the Global Payments Week (GPW) in Marrakesh, Morocco, marking a significant milestone in the revival of Somalia’s financial system. And guess what? This comeback happened after a 32-year hiatus! How impressive is that?

The biennial GPW event is co-hosted by the esteemed World Bank and the Committee on Payments and Market Infrastructures (CPMI) of the Bank for International Settlements (BIS). It is an exclusive networking platform for central bank professionals worldwide, fostering a knowledge-sharing culture across countries and regions. This year, the GPW’s main topics include some of the most groundbreaking themes in finance, such as Central Bank Digital Currency (CBDC), Crypto-Assets, and Open Banking.

But wait, there’s more. Somalia’s financial system collapsed in 1991 during a civil war, which left the country without a working banking sector for over two decades. However, the CBS has been hard at work and has established a solid interbank payment system. Their next step? To issue new shilling banknotes and tackle inflation and counterfeit currency, of course.

And that’s not all. The CBS plans to streamline payment processing, mitigate operational risks, and reduce delays in international transfers by adopting the IBAN in Somalia. With this move, remittances, especially from the Somali diaspora, will be much easier to process, helping the country’s economy grow even more.

The CBS is also planning to establish new branches in federal member states’ capitals to collect taxes and store money. Quite an ambitious goal, but it’s all part of a broader strategy to maintain economic stability and preserve the value of Somalia’s currency.

And guess what? Their efforts haven’t gone unnoticed. At the 2023 Central Banking Awards, the CBS won the Payments and Market Infrastructure Development award. International banks such as Turkey’s Ziraat Katılım and Egypt’s Banque Misr are even planning to open branches in Somalia, indicating a significant increase in investment and an exciting boost for trade financing in the country.

It’s clear that Somalia’s financial system is on the rise, and the revival of the CBS is proof of that. Watch this space, folks!



This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept