Somalia plans to introduce new notes by 2024

The Central Bank of Somalia is planning the first new issue of 1,000 shilling ($1.76) banknotes for more than three decades.

The last 1,000 shilling note entered circulation in 1990, the year before Somalia’s central government collapsed. The pre-civil war paper currency had continued to circulate, but over time the notes have worn out and counterfeits have driven out genuine pieces.

In a January 17 interview with Bloomberg, deputy governor Ali Yasin Wardheere indicated that a new note will be in the market by 2024.

The International Monetary Fund says the US dollar remains Somalia’s de facto currency. “The US dollar banknotes are used as cash currency with Somali banknotes serving as a sub-denomination,” the fund wrote in its Article IV report, issued in December. The most vulnerable groups would benefit from the relaunch of Somali banknotes, as they do not have access to dollars or mobile money, it added.

This is not the first time policy-makers have mooted the reintroduction of Somalian banknotes. The International Monetary Fund reported in early 2017 that the central bank would start issuing new 1,000-shilling notes in that year.

Wardheere also said the central bank would be creating a new anti-counterfeiting unit and working to reestablish its branch network.