In a significant development for Somaliland’s financial sector, the Central Bank of the Republic of Somaliland and the Association of Money Changers have officially reached a landmark agreement, addressing key issues related to currency exchange reform and the regulation of money changers.
The deal, finalized through extensive dialogue and mutual compromise, marks a pivotal step toward stabilizing the country’s economy and enhancing the integrity of its financial system.
The agreement focuses on critical aspects of the new regulatory framework, including the licensing of money changers and the management of cash deposits, as outlined in the Central Bank’s Exchange Management Directive No. 03/2024.
An official event to mark the occasion was held in Hargeisa, attended by senior CBSL officials, led by Deputy Governor of the Central Bank HamseKhaire, alongside leaders of the Association of Money Changers. Both parties hailed the agreement as a major milestone in fostering economic stability and public trust in Somaliland’s currency exchange markets.
Speaking at the event, the Deputy Governor of the Central Bank Hamse emphasized that the agreement aims to strengthen the nation’s financial infrastructure, promote transparency and fairness among money changers, and create a stable business environment to boost public confidence. “This is a forward-looking step to ensure the resilience of our financial system,” he stated.
The Chairman of the Association of Money Changers echoed these sentiments, announcing the immediate implementation of the agreement. He also extended an apology to the Central Bank for recent tensions, confirming that those disputes have been resolved amicably. Additionally, he urged money changers across Somaliland to promptly update their licenses to comply with the new regulations.
This agreement is expected to pave the way for the Central Bank’s broader plans to reform currency markets, addressing longstanding challenges and aligning the sector with modern financial standards. As Somaliland continues to navigate its economic development, this collaboration between public institutions and private stakeholders is seen as a promising foundation for future growth.