Ali Yasin Wardheere, the deputy governor of the Somalian central bank, claims that the organisation intends to use freshly printed shilling banknotes to combat inflation and currency forgers. According to reports, the bank stated that it hoped to finish the process of replacing old, high-value shilling bills with brand-new banknotes in 2024.
Preserving the Value of New Money
Since 1991, high-value shilling bills have been in use, but the Central Bank of Somalia (CBS) intends to replace them with new banknotes. According to a report, the central bank anticipates finishing this process by 2024 and is hoping it would assist the war-torn nation in fighting inflation and outbid currency counterfeiters.
Ali Yasin Wardheere, the deputy governor of the CBS, stated in an interview with Bloomberg that the central bank started switching out high-value bills with newly printed banknotes in 2018. According to Wardheere, both the World Bank and the International Monetary Fund have helped in this process.
The deputy governor claims that the central bank also created a division with the goal of “combating the counterfeit money business.” Additionally, the unit is responsible for maintaining the value of the new currency that the central bank intends to produce.
Wardheere stated that the central bank would open additional branches in the capitals of the federal member states to aid in the achievement of some of the goals. These branches will assist the CBS in collecting taxes and storing money, and the central bank wants to have them operational by June.
Since Siad Baare was overthrown in 1991, Somalia hasn’t printed any new shilling banknotes, and the old ones are now discoloured and hard to find. The use of US dollars and privately created money has increased as a result.