By Horn Africa News
Mogadishu –The Central Bank of Somalia has confirmed that the Federal Government is planning to introduce newly printed Somali Shillings as part of an ongoing economic reform initiative, supported by the International Monetary Fund (IMF).
The announcement was made by Central Bank Governor Abdirahman Mohamed Abdullahi during a press briefing following the annual economic policy conference held in Mogadishu.
“The government is pursuing a plan to issue new currency,” the Governor said, adding that the initiative is still in its early technical stages and more details will be shared once preparations are complete.
In a statement issued on July 9, 2025, following the IMF Executive Board’s conclusion of the third review under Somalia’s Extended Credit Facility (ECF), the IMF acknowledged the government’s efforts and confirmed its awareness of the new currency plans.
“Despite both domestic and external challenges, Somali authorities have continued their reform efforts. It is crucial to proceed cautiously with the reintroduction of the Somali Shilling, using a currency board arrangement,” said Nigel Clarke, IMF Deputy Director and Chair of the Executive Board discussions.
The IMF pledged technical support to the Central Bank of Somalia, particularly in the design of the new currency, development of monetary policy, and efforts to increase public participation in the formal financial system.
The currency board system implies that each unit of Somali Shilling issued must be fully backed by foreign currency reserves, ensuring stability and credibility.
Somalia has not issued official banknotes for over 30 years, following the collapse of the central government in 1991. Today, most economic transactions rely on the US dollar and mobile money, while the old Somali Shilling in circulation is largely outdated or counterfeit.
