Somalia is taking a bold step toward restoring its monetary sovereignty.
Prime Minister Hamza Abdi Barre has revealed a government plan to print new banknotes of Somali Shilling, a currency long overshadowed by the US dollar.
The full cost of the reprint is estimated at $70 million, with $30 million already secured from international partners.
The government is now seeking the remaining $40 million, while stressing it will avoid taking on new debts.
Why Redesigning the Shilling Matters
The Somali Shilling has lost near-total value in daily transactions.
Most financial dealings—especially large purchases—are done in dollars or through mobile money systems, mostly because the Shilling doesn’t function reliably.
Experts say this dollarization weakens the government’s ability to implement monetary policy, control inflation, and maintain price stability.
Supporting Structures & Reform Measures
The Central Bank of Somalia (CBS), legally granted exclusive power to issue currency under the Central Bank Act, leads the project.
As part of the reform, digital payment systems like the Somalia Instant Payment System (SIPS) and a national QR code, SOMQR, are being expanded to integrate with the new currency design and circulation.
These measures are intended to reduce dependency on the dollar and help crack down on counterfeiting, a serious problem in Somalia.
Risks, Challenges & Needed Safeguards
Experts caution that printing new currency is only a first step.
For real impact, Somalia must implement strong security features to avoid counterfeiting, ensure transparency in how funds are used, and reinforce the role of the Central Bank in regulating money supply and exchange rates.
Without these, trust in the new banknotes of Somali Shilling will remain fragile.
What’s Left to Print New Banknotes of Somali Shilling?
In the next few weeks, Somalia may finalize arrangements with potential donors—Kuwait is among those in talks—to secure the remaining funding.
Once funds are secured, printing designs will be developed, with denominations likely including 1,000; 2,000; 5,000; and 10,000 Shillings.
If all goes well, the Shilling’s revival could begin quietly, starting in regions with stronger banking infrastructure, before full rollout.
Restoring the currency value is not just about printing new banknotes of Somali Shilling —it’s about rebuilding confidence in Somalia’s economy.
