The Central Bank of Somaliland currently uses foreign exchange auction as the sole monetary policy instrument and is planning to add the reserve requirement in the medium term.
The Bank Supervision Department’s mandate as stipulated under Article 4(2) of the Central Bank of Act is to foster liquidity, solvency and proper functioning of a stable market-based financial system.
National Payment System will have to provide for regulation and supervision of payment systems and payment service providers, and for connected purposes.
Founded in 1994, the Bank of Somaliland is the Central Bank of the Republic of Somaliland established under article 13 of the constitution of Somaliland. The Bank’s mission is to promote the well being of the people of the republic of Somaliland by maintaining monetary and financial stability. It is 100% owned by the Government of Somaliland but it is constitutionally autonomous institution. Pursuant to the Central bank Act no.54/2012: the Bank maintains public confidence in the bank notes. The Bank designs and issues durable, high quality bank notes, containing advanced security features that are easy to check and resilient to counterfeiting. But confidence in our money is about more than just the bank notes we use. It is also about protecting the value of that money over time, so that households and businesses can plan, invest, save and spend with confidence. The Bank plays a vital role in maintaining this confidence through its monetary stability objective. To promote the safety and soundness of individual financial firms, the financial supervision and Regulation Unit of the Bank regulates and supervises roughly 300 different financial institutions including banks, remittance companies, foreign exchange dealers, micro-finances, insurers and major investment firms.
Bank of Somaliland Vision is Promoting and maintaining price and financial stability, efficient financial sector and sustainable economic growth