Since the collapse of the government and the beginning of the civil war in 1991, Somalia was left without a conventional monetary system. Indeed, the only banknoteA banknote (or ‘bill’ as it is often referred to in the US) is a type of negotiable promissory note, issued by a bank or other licensed authority, payable to the bearer on demand. More currently available is the 1,000 shilling and monetary transactions are exclusively made in dollars.
Nevertheless, Somalia is committed to ensuring greater financial stability and is willing to implement a monetary policy. The government is also determined to print its first banknote series in over 25 years thanks to the support of International Monetary Fund (IMF) and the World Bank. The decision to issue a new currencyThe money used in a particular country at a particular time, like dollar, yen, euro, etc., consisting of banknotes and coins, that does not require endorsement as a medium of exchange. More is welcomed by the observers, but the country will first need to establish new banking partnerships as it currently supervises only 6 banks and 12 moneyFrom the Latin word moneta, nickname that was given by Romans to the goddess Juno because there was a minting workshop next to her temple. Money is any item that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular region, country or socio-economic context. Its onset dates back to the origins of humanity and its physical representation has taken on very varied forms until the appearance of metal coins. The banknote, a typical representati... More transfer entities, mainly located in the capital.
Somalia is considered one of the most active mobile money markets in the world with 37% of the population using e-payment services on their mobile phones. Users can pay bills, purchase goods and transfer money via their mobiles. Despite the efficiency of this paymentA transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. More system, the government hopes to ease the grip telecommunication companies have on the economy via a new monetary policy which includes the issuance of a new banknote series.
To read the original article, please click here.