According to Ali Yasin Wardheere, deputy governor of Somalia’s Central Bank, the bank plans to combat inflation and currency counterfeiting with newly issued shilling bills. The bank reportedly said it hopes to complete the process of replacing old shilling and high denomination shilling bills with the new design in 2024.
preservation of the value of the new bills
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The Central Bank of Somalia (CBS) plans to replace the high value old shilling bills in circulation since 1991 with redesigned bills. The central bank hopes the process, which will be completed by 2024, will help the war-torn country fight inflation and weaken counterfeit currency dealers,reports
In remarks during an interview with Bloomberg, CBS Deputy Governor Ali Yasin Wardheere revealed that central banks have begun replacing high-value bills with redesigned bills in 2018. Both the International Monetary Fund and the World Bank supported the process, Wardheere reported.
According to the deputy governor, the central bank also established a unit tasked with “fighting the counterfeit money market.” The unit is further tasked with the job of maintaining the value of the new currency the central bank plans to print.
To help the central bank achieve its goals, Wardhair said it will establish new branches in the capitals of the federal member states. These branches, which the central bank hopes to have in place by June, will help the CBS collect taxes and store money.
Since the ouster of Siad Baale in 1991, Somalia has not issued any new shilling bills, while old bills have become used up and widely unavailable. As a result, the use of U.S. dollars and privately printed currency has expanded.
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