Somaliland: Plans Afoot to Eliminate Use of Foreign Currencies as Legal Tender in the Country

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Somaliland Finance minister Ms Zamzam Abdi and other ministry officials at the dollar as legal tender elimination meeting in Hargeisa

By: Latifa Yusuf Masai
HARGEISA (Somalilandsun) – The prevalent use of foreign currencies as legal tender in Somaliland is set to end soon.

This was the outcome of a series of meetings between ministry of Finance, Central bank, Major commercial companies and the two telecommunication companies of Telesom and Somtel that provide a mobile money transfer- MMT Technology services.
The Somaliland minister of finance Ms Zamzam Abdi Aden said the move to eliminate foreign currency use in the country was the first step towards stabilizing the upward spiraling rate of exchange that has seen a dollar rate Vis a Vis Somaliland shilling rise from 6.500 to over 7000 within a short span.
. “Citizens of Somaliland the dollar does not belong to us and what is ours is the Sl Shilling” said Ms Zamzam as she wondered why a local shopper has to be quoted prices of all commodities in dollars rather than the local currency.
The main and most important agreement out of the said series of meeting was the use of local currency while transacting through the Telesom provided ZAAD Service and Dahabshil’s e-Dahab the two companies that host the technology service that offers a mobile money transfer- MMT Technology supporting mobile banking, deposits, withdrawals, and transfers among many other services.

A Section of representatives from big comapnis in Somaliland at the meeting
If the government brings this move to fruitation then the suffer ring faced by citizens while transaction in the country shall come as a relief in lieu of the fact that when one is exchanging from Sl sh to dollar the price is higher while changing from dollar to sl sh is lower.
In May of 2014 Telesom had announced plans to incorporate the local currency in its Zaad service platform and the prevalent accord with the ministry of finance and central bank might thus see immediate action.

Watch meeting briefing

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