By - Reporter
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MOGADISHU, 20 October 2026 Somalia’s Central Bank Governor Abdirahman Mohamed Abdullahi has outlined four priorities he wants the institution to achieve by 2029, placing the restoration of the Somali shilling at the centre of efforts to modernise the country’s financial system.
In an interview with African Business magazine published on 9 October, Abdullahi said the success of the bank’s reforms would be measured by their impact on the daily lives of Somali households and businesses.
The governor identified four objectives: establishing a functioning and widely used national currency, developing a more inclusive financial system, creating a secure and fully interconnected payment network, and strengthening the Central Bank’s reputation as a trusted, independent and effective institution.
Restoring the Somali Shilling
The return of the national currency is the governor’s leading priority. Somalia’s economy has relied heavily on the US dollar since the Central Bank last issued currency in 1990.
Abdullahi said the federal government had chosen a currency board arrangement pegged to the US dollar, under which the Somali shilling would be convertible into dollars at a fixed exchange rate and backed by foreign exchange reserves.
He explained that the objective was not to replace the US dollar but to allow both currencies to circulate alongside each other.
The governor said several requirements must be completed before the currency can be reintroduced, including new legislation, amendments to the Central Bank Act, and financing for printing banknotes and building foreign exchange reserves.
He said preparations were progressing well but did not provide a specific launch date.
Expanding Financial Inclusion and Modernising Payments
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Abdullahi said more than 87% of Somalis use mobile money services, while fewer than 20% hold bank accounts, highlighting the gap between widespread digital transactions and access to formal banking.
He said the Central Bank had developed modern payment infrastructure, including a 24-hour Instant Payment System designed to connect commercial banks and mobile money operators once fully implemented.
The governor also highlighted Somalia’s participation in the East African Community’s cross-border payment initiative and said the country had reached an advanced stage in efforts to join the Pan-African Payment and Settlement System (PAPSS).
These initiatives are intended to improve financial connectivity, facilitate transactions and expand access to financial services.
Rebuilding Public Trust
Abdullahi, who has served as Central Bank Governor since April 2019, said the institution had strengthened its governance and established clean audited financial accounts.
However, he identified restoring public confidence as one of the most difficult challenges facing the bank.
He said public trust could not be restored through official declarations alone but had to be earned through sound governance, transparency and effective measures against illicit financial activities.
The four priorities form part of the Central Bank’s longer-term reform agenda, with the governor emphasising that progress should ultimately be judged by improvements in financial services for Somali households and businesses.