govrener.png The Central Bank of Somaliland has missions and priorities that utterly supports the National Development Plan I, II, and the upcoming III which describes maintaining the price and financial stability through safeguarding the exchange rate, financial institutions’ soundness, access to finance, financial inclusion and compacting inflation to achieve a sustainable economic growth.

The Central Banks’ programme towards economic growth of the country is focussed on macroeconomic stability, liberalization of the foreign exchange, international trade. The Government also put in place conditions to improve the incentive structure and business climate so as to promote savings mobilization and investment as well as the rehabilitation the country’s economic, social and institutional infrastructure facilitated by robust financial system.

In the context of East African Countries, the banking supervision departments in the several central banks are cooperating to enhance their capacities and harmonize banking supervision and regulation practices in accordance with the Basel Core Principles for effective banking supervision. Hence, we started to make different pre-deals with the Central Banks in the region to cooperate with the cross=border businesses among countries and hence promote financial inclusion of business sector which is a new and crucial corporate social responsibility of the central bank. The robustness of payment system is gaining increasing significance in the wake of automation and complexity of financial transactions, therefore we are working on creating a platform that provides a regulatory framework for strengthening payment systems and e-banking in the country. By the same token, the Central Bank is going to provide enabling environment for increasing the scope of e-banking and strengthening the relations of banks by allowing the banks to accept payment over clearing house. This step will not only provide convenience to customers but also will also open up business opportunities for banks. The Central Bank is going to start the process of linking up banking sector-wide electronic credit system through Credit Reference Bureau which will assist banks to screen creditworthiness of customers, hence diminish the default rate.

Recognizing that success of any institution hinges on the efficiency of an institutions with overall competence and commitment of its employees, the CBSL is going to be strengthened its institutions’ human resource layout by creating, and finalizing the necessary strategies, policies, guidelines and documents. All the initiatives made or making by the Bank point to one direction, that is, the strengthening of the financial sector in the country and within the region to avoid contagion effects that may arise due to weakness of the member states’ supervisory standards or negative externalities that may arise such as Money Laundering.

Moving forward, while CBSL will continue to perform its role and responsibilities with highest level of integrity and ethical standards our primary emphasis for next year will again be towards maintenance of price and financial stability. The banks will be steered to nurture access to development finance, adopt Basel accords, strengthen capital base and implement technology. High standards of regulation and supervision with an emphasis on improving quality of service and efficiency will be enforced.

Finally, the Central Bank of Somaliland looks forward to receiving continued support from all stakeholders to enable us meet the diverse challenges that lie ahead.

Eng. Ali Abdilahi Dahir 

Governor, Central Bank of Somaliland