May 7, 2025, under the the Central Bank of the Republic of Somaliland adopted a key measure within its currency stabilization policy, employing a robust monetary policy tool called open market operation” (Open Market Sale).
On Wednesday, under the leadership of the Governor, deputy Governor, and the Director General, the central Bank has taken a decisive and a strategic step as part of it’s ongoing commitment to monetary and financial stability.
Through this initiative, the Bank injected 1 million dollars into the market to reduce pressure on the foreign exchange rate and curb the rising value of foreign currencies. Leveraging its monetary policy authority, the Central Bank strategically monitors market movements to stabilize the exchange rate and prevent abrupt, unpredictable changes.
The Central Bank urges all Somaliland citizens to have confidence in their currency—the Somaliland Shilling—and to refrain from actions that could disrupt or destabilize the foreign exchange market. The Bank will persistently carry out these operations until the foreign exchange market achieves stability and security.
An Open Market Operation (OMO) is a monetary policy tool used by central banks to regulate the money supply and stabilize financial markets, including the foreign exchange market. It involves the buying or selling of government securities (such as bonds or treasury bills) in the open market to influence the amount of money circulating in the economy.
By using OMO, the Somaliland Central Bank aims to create a stable and predictable foreign exchange market, encouraging trust in the Somaliland Shilling and fostering economic confidence.