The Central Bank of the Republic of Somaliland has announced a significant step in regulating the nation’s financial system with the launch of a registration and licensing process for currency exchange operators, which began on October 18, 2025.
This initiative aligns with the Central Bank Law No. 54/2012, the Foreign Currency Exchange Regulation No. 03/2024, and the principles of a free market economy as outlined in Somaliland’s constitution.
The Central Bank aims to strengthen the financial sector by protecting the value of the Somaliland Shilling, eliminating black market activities, and ensuring fairness, equality, and transparency in currency exchange operations.
The initiative includes categorizing exchange operators into tiers based on their financial capacity and impact on the national economy, as well as enhancing oversight of transactions to ensure efficient and accessible services for both Shilling and Dollar exchanges.
The Bank emphasized that exchange operators must provide both currencies to avoid exploitative practices, such as collecting hard currency (Dollars) and redirecting it to the black market, which imposes additional costs on the public. Licenses will only be granted to individuals or entities meeting strict regulatory requirements, and renewals are mandatory, with no exemptions.
The public is encouraged to address any concerns through legal channels. The Central Bank highlighted its consultative approach, noting collaboration with the WADAJIR Exchange Operators Association in shaping these reforms.
Exchange operators are reminded that the deadline for renewing expired licenses is October 30, 2025. Failure to comply will result in the forfeiture of their licenses, as stated by the Central Bank.
This move underscores Somaliland’s commitment to fostering a modern, transparent, and reliable financial system, ensuring economic stability and public trust in the currency exchange market.