Somaliland Unveils Bold Vision for Central Bank Transformation

By: Mohamed Duale

HARGEISA, Nov 9 (Horn Diplomat) — Somaliland President Dr. Abdirahman Mohamed Abdillahi (Irro) on Sunday chaired a high-level consultative meeting with the senior leadership of the Central Bank of Somaliland to review ongoing financial sector reforms and institutional modernization efforts.

The meeting, held at the Presidential Palace in Hargeisa, focused on monetary governance, financial stability, and the accelerated modernization of the Central Bank — seen as a cornerstone of the country’s economic sovereignty and fiscal resilience.

The President received a detailed briefing from the Bank’s Board of Directors outlining nine key reform priorities, including measures to strengthen the Bank’s capital base, enhance institutional autonomy, and align regulatory frameworks with international financial standards.

Among the initiatives presented were the nationwide rollout of the National Inclusive Instant Payment System (NIIPS), the launch of a national interbank switch (Switch-KA), the establishment of a National Credit Reference Bureau, and the creation of a Deposit Insurance Scheme aimed at protecting public savings and bolstering financial confidence.

Other priorities include a legal and regulatory overhaul of the Central Bank’s frameworks, modernization of foreign exchange governance, and a feasibility study for establishing a state-owned commercial bank to expand access to financial services while maintaining operational independence from the Central Bank.

The President commended the Central Bank’s leadership for its progress and reform agenda, emphasizing the Bank’s central role in maintaining monetary stability, strengthening public confidence in the Somaliland Shilling, and supporting sustainable economic growth.

He reiterated his administration’s full support for the Bank’s modernization program, pledging continued legislative and policy coordination to ensure the success of the ongoing reforms.

The meeting was attended by the Governor, Deputy Governor, Director General, and three members of the Bank’s non-executive board.

The session concluded with a commitment to reinforce the country’s financial governance framework, enhance access to reliable financial services, and preserve the independence and integrity of Somaliland’s monetary institutions — key pillars of the nation’s long-term development strategy.

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