Report: Somalia to Fight Inflation and Counterfeiters With New Banknotes

Report: Somalia to Fight Inflation and Counterfeiters With New Banknotes

According to the deputy governor of the Somalian central bank, Ali Yasin Wardheere, the institution plans to fight inflation and currency counterfeiters with newly issued shilling banknotes. The bank reportedly said it hopes to complete the process of replacing old and high-value shilling bills with newly designed banknotes in 2024. Preserving the Value of New Money

The Central Bank of Somalia (CBS) plans to replace old, high-value shilling bills that have been in circulation since 1991 with redesigned banknotes. The central bank hopes this process, which it expects to complete by 2024, will help the war-torn country fight inflation as well as undercut counterfeit currency dealers, a report said.

In his remarks during an interview with Bloomberg, Ali Yasin Wardheere, the deputy governor at the CBS, revealed that the central bank began replacing high-value bills with redesigned banknotes in 2018. The International Monetary Fund and the World Bank have both assisted with this process, Wardheere reportedly said.

According to the deputy governor, the central bank has also established a unit with a mandate of “combating the counterfeit money market.” The unit is further tasked with the job of preserving the value of the new currency that the central bank is planning to print.

To help the central bank achieve some of the objectives, Wardheere said the CBS would establish new branches in the capitals of 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 Baare in 1991, Somalia has not issued new shilling banknotes while the old ones are now worn out and not widely available. As a result, the use of U.S. dollars and privately printed currency has grown.

Register your email here to get a weekly update on African news sent to your inbox:

Tags in this story Central Bank of Somalia, high inflation, International Monetary Fund (IMF), Siad Baare, US dollars, World Bank

What are your thoughts on this story? Let us know what you think in the comments section below. Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route. East African Community to Decide on Regional Central Bank Launch in 2023 AFRICA | 2 days ago Tanzanian Central Bank Adopts "Phased and Risk-Based Approach to Adoption of CBDC" AFRICA | 4 days ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleDavos 2023: Banking Panel Reinforces the Need for Crypto Regulation Next articleBitcoin, Ethereum Technical Analysis: BTC Back Above $21,000 Despite Genesis Bankruptcy Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItRipple CEO: SEC Lawsuit Over XRP "Has Gone Exceedingly Well"

The CEO of Ripple Labs says that the lawsuit brought by the U.S. Securities and Exchange Commission (SEC) against him and his company over XRP "has gone exceedingly well." He stressed: "This case is important, not just for Ripple, it’s ... read more.Draft Law Regulating Aspects of Crypto Taxation Submitted to Russian Parliament UAE Airliner Emirates to Launch NFTs and Experiences in the Metaverse Microbt Reveals Latest Bitcoin Mining Rigs — Machines Produce up to 126 TH/s With Custom 5nm Chip Design Terra"s Algorithmic Dollar-Pegged Crypto UST Is Now the Third-Largest Stablecoin