By Mohamed Abdi - Reporter
Somalia, 13 April 2026 Markets in Somalia’s capital Mogadishu have begun rejecting payments in Somali shilling as traders shift to U.S. dollars and mobile money, raising concerns about the future of the national currency.
According to local reporting, Somali shilling has become difficult to use for everyday transactions, with businesses saying they cannot use it to restock goods.
Markets where this situation has so far been confirmed include Bakara Market, Hamar Weyne Market, and Suuqa Holaha Market.
The shift, which initially took hold among larger businesses, has now spread to smaller vendors, many of whom provide essential goods and services, affecting low-income consumers who rely on cash.
Some traders said their poorer customers are facing new challenges as they struggle to adapt to mobile payments or access foreign currency.
“Customers used to bring cash, but now even small payments are requested through mobile money,” said Sahro Hassan, a local trader.
Money exchangers also reported significant changes in demand, saying the use of Somali shillings has dropped sharply.
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“The situation has changed drastically. People are refusing Somali shillings,” said a currency dealer in Mogadishu.
However, some business owners warned that abandoning the Somali shilling could undermine national identity and economic stability.
“We are Somali, and we have our own currency. Even if it is old, it represents us,” said Abdullahi Abdulle Hiraabe, a vegetable trader. “If we abandon it, it could affect our identity.”
The Somali shilling has been in circulation for decades, but its use has declined with the rise of digital payments and widespread reliance on the U.S. dollar. Traders say the currency’s deterioration and lack of replacement have contributed to its rejection.
The Ministry of Commerce and the Somali Chamber of Commerce did not immediately respond to requests for comment.
The development highlights a broader shift toward digital transactions in Somalia, while raising concerns about the exclusion of vulnerable groups and the long-term viability of the national currency.
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