By M.A. Egge
The Central Bank of Somaliland has launched the implementation of direly needed regulations that govern various major and crucial transactions of financial instruments.
In an event held at Hargeisa, the Central Bank chief Dr. Ali Abdillahi Dahir underscored the importance of implementing and adherence to the regulations that would guide the methods of payments and those of operators’ payment methods.
Precisely, the announcements are the regulation of payment methods and operators of payment methods Regulation No. 1/2023, regulation of the exchange room (stock) of financial instruments, Regulation No. 2/2023, regulation of foreign currency exchange pegs Regulation No. 3/2024 and the regulation of the service telecommunications interconnection charges and tariffs Regulation 4/2024.
Financial instruments are assets that can be traded or exchanged. Some examples of financial instruments include stock shares, exchange-traded funds (ETFs), bonds,certificates of deposit (CDs), mutual funds,loans and derivative contracts hence providing smooth and efficient flow and transfer.
This would in essence pave the way for introduction of bourses and better regulation of such services as the telecommunications interconnection charges and tariffs regulations.
On the occasion of the inauguration of the Central Bank regulator, officials of the central bank, members of the cabinet, officials from the country’s financial institutions and other dignitaries and guests attended.
The event was graced by several cabinet ministers, the sector’s stakeholders, academics and invited personalities.
The Central Bank governor underpinned the importance of the implementation of the rules, which has some of them still undergoing perusal in the parliament, to the development of the nation and its people.
He said, “Some of these laws are before the parliament, and we are ready to enforce them. Soon, we will share their plans, implementation and training with you”.
The Minister of Communications and Technology of Somaliland Hon. Ahmed Yusuf Idiris, said that they are planning to unify the processes of government institutions where they work.
He said. “We are currently working as a ministry on a plan to connect government systems”.
Minister of Finance Development of Somaliland Dr. Saad Ali Shire, said that it was a collective responsibility hence “not only the central bank can enforce the rules and regulations of the central bank, but it is necessary for everyone who is concerned to take responsibility for the implementation”.
On its imperativeness he pointed out that, “There is a need for rules and regulations to be in place, there is a need for procedures, there is a need for policies, issues which are what we are unveiling here today”.
Of note he quipped, “The law can be made but its value can be found only when it is implemented and collective responsibilities in enforcing them are a requisite”.