Mogadishu orders traders to accept Somali shilling in market transactions

Friday April 17, 2026

Mogadishu (AX) — After days of commercial strain in Somalia’s capital, authorities in Mogadishu moved on Thursday to enforce an order compelling traders to accept the Somali shilling.

Banadir Regional Governor Hassan Mohamed Hussein Muungaab issued the directive in response to mounting complaints that refusal to take the national currency had disrupted everyday business and public transport across the city.

Under the order, any trader who declines the Somali shilling will be regarded as violating the law. Muungaab said the currency is not only central to the economy but also an emblem of national sovereignty.

“Protecting the local currency is a constitutional obligation and a responsibility of every citizen,” Muungaab said.

Over recent days, a number of markets, minibus operators and small retailers had stopped accepting the battered, low-value Somali shilling notes, especially the 1,000-shilling bill, pointing to inflation and dwindling public confidence in the currency.

After an emergency meeting between the governor and traders, officials ordered the full return of the shilling in the capital.

By Thursday, major markets in Mogadishu — including Bakaara Market — were reporting a return to normal, with traders once again accepting the 1,000-shilling note.

One vendor at Bakaara Market said she had resumed taking the currency in line with the administration’s order. “There were many problems when the shilling was rejected, especially with payments and understanding between buyers and sellers,” she said.

Another vegetable seller said the brief rejection of the currency had caused real disruption to business. “We faced challenges, but now we are happy with the decision,” he said.

The regional administration said the enforcement is intended to steady local commerce and avert further economic disruption, even as pressure grows on federal authorities to confront wider monetary policy and currency reform problems.