- +252 1866151
- info@centralbank.gov.so
- EN
- SO
The first currency issued for the new Somali Shilling, including the 100, 20, 10, and 5 Shilling notes, was authorized by Presidential Decree No. 86 on March 5, 1962. The specifications and design features of this currency were published in Legislative Law No. 2 on June 5, 1962. It came into effect and began circulating across the entire territory of the Somali Republic on October 15, 1962.
Somalia’s economy faced persistent challenges from 1960 to 1990, struggling with dependency on foreign aid and a lack of infrastructure. At independence, Somalia relied heavily on subsidies from Italy and Britain, with a weak tax system and a near-subsistence agricultural sector. The 1963 Five-Year Plan aimed to improve infrastructure and agricultural exports but failed to achieve long-term economic self-sufficiency. Despite some progress in livestock exports and sugar production, the country struggled with overgrazing, inadequate agricultural practices, and political instability.
Under General Siad Barre (1970-1975), Somalia adopted scientific socialism, nationalizing industries, Banks and promoting agricultural cooperatives. However, this period faced setbacks, including a devastating drought and limited industrial success. The government’s socialist policies, while initially promising, failed to create sustainable growth, and economic conditions worsened after 1975 due to corruption, mismanagement, and military focus on territorial expansion.
By the 1980s, Somalia shifted towards IMF-guided structural adjustments in response to mounting debt and a deteriorating economy. While some reforms were implemented, including currency devaluation and privatization, the country faced resistance to change and continued economic decline. By the late 1980s, civil war further destabilized the economy, leading to a collapse in exports and widespread shortages.
Overall, Somalia’s economic trajectory from 1960 to 1990 reflects a series of failed strategies, political instability, and external shocks, resulting in limited development and a deepening economic crisis.
The Central Bank of Somalia was temporarily re-established in Mogadishu after the collapse of the government. When the Transitional Federal Government, led by President Abdullahi Yusuf, relocated to Mogadishu, the bank was officially reopened on January 29, 2007. The re-establishment of the bank marked the beginning of efforts to revive its operations, including the collection of all available documents and materials related to its previous functions.
On January 31, 2007, the Central Bank of Somalia announced, through national radio and newspapers, that it had resumed operations. The bank outlined its key responsibilities as follows:
In May 2007, the Central Bank began offering various accounts in Somali Shillings and US Dollars for government institutions. It implemented a 2% commission fee for providing these services.
The Bank also made the first deposit of Somali Shillings, a sum of money belonging to a businessman named Mr. Said Abdi Firin. The total amount of the deposit was SOS 72,415,010,000 (seventy-two billion, four hundred fifteen million, ten thousand Somali Shillings). The Bank charged a 2% commission on that amount, which amounted to SOS 1,448,300,200 (one billion, four hundred forty-eight million, three hundred thousand, two hundred Somali Shillings).
The Central Bank of Somalia was established in 1968 as the country’s financial regulatory institution. After years of insecurity, fragility, and economic decline due to the collapse of the state in 1991, The Central Bank was revived and strengthened with the CBS Act of 2011.
CBS © All Rights Reserved.