Mogadishu traders stop accepting Somali shilling amid inflation, currency decline

Tuesday April 14, 2026

Mogadishu (AX) — In a swift and sweeping move that caught many residents off guard, traders across Mogadishu on Monday stopped accepting the Somali shilling, pushing the national currency out of one of the last major markets where it still circulated in limited form.

The change took hold quickly in the city’s busiest markets, on public transport and in neighborhood shops, leaving many people — especially low-income residents who depend on cash for daily purchases — facing immediate difficulties paying for food, fares and other essentials.

Some commuters said they were turned away from public transport after attempting to pay in Somali shillings.

“I stopped at a public transport vehicle this morning, but the driver told me the currency was not accepted. I am stuck,” one passenger said.

Business owners defended the decision, pointing to the poor condition of the currency and its falling value.

“The notes are torn and worn out, and their value has fallen,” one trader said. “There is no system to replace them, so we cannot continue accepting them.”

Another added: “Today, if you bring shillings, you will not be sold anything. You cannot even ride in public transport. People want dollars or mobile money.”

Somalia’s economy has been heavily dollarized for years, with the U.S. dollar and mobile money platforms dominating most transactions in urban areas. Even so, Mogadishu had remained one of the few places where small-denomination Somali shilling notes were still in use, particularly among poorer households.

Economic analysts say the latest shift reflects deepening inflation, growing distrust in the currency and the failure to issue fresh banknotes to replace those that have deteriorated in circulation. Somalia has gone decades without a comprehensive currency reform, and most notes in use today come from older print runs that have lost much of their purchasing power.

The Federal Government of Somalia and the Banadir Regional Administration have not yet commented publicly on the development. The move is likely to intensify pressure on authorities to spell out monetary policy and clarify the future of the national currency.

The broad rejection of the Somali shilling highlights wider concerns about economic management, currency reform and financial inclusion in a country where electronic payments and foreign money increasingly shape everyday life.