Copy right  2015 Central Bank of Somalia, All Rights Reserved.
Central Bank of Somalia Central Bank of Somalia provides the nation with safe, flexible and stable monetary & financial system.”

            MONETARY

POLICY

MONETARY POLICY On    the    monetary    policy    management,    the newly   revived   Central   Bank   of   Somalia   is   in the     process     of     taking     full     charge     of formulating     and     implementing     monetary policy.   Speedy   resumption   of   taking   charging of    monetary    policy    by    the    Central    Bank    is however    handicapped    by    lack    of    adequate resources, both financial and material. Alongside   the   Somali   shilling,   the   US   dollar   is also   widely   accepted   as   a   medium   of   large and    high    transactions    even    for    local    trade exchanges     i.e,     the     economy     is     deeply dollarized   in   view   of   weak   confidence   in   the local currency some of which are counterfeits; Dollarization     not     withstanding,     the     large issuance    of    the    Somali    shilling    increasingly fuels   price   rises   especially   for   the   low   value transactions   to   the   extent   that   inflation   runs in   high   double   digits   and   the   Somali   shilling   is continuously    on    a    depreciation    trend.    The inflationary   environment   is   expected   to   cease as   soon   as   the   Central   Bank   takes   full   charge of   monetary   policy   and   replaces   the   presently circulating   currency   printed      by      the   private sector. FRAME WORK The   Central   Bank   of   Somalia   Act,   Chapter   II Art   2   Section   (2)   states   the   functions   of   the Bank: The   Bank   exercise   any   type   of   central   banking function   and   shall   enjoy   all   the   prerogatives of   a   Central   Bank,   and   without   prejudice   to the    generality    of    the    foregoing    shall    in particular   have   the   power   to   issue   currency, regulate   the   banking   and   credit   system   and manage the external reserves of the Republic OBJECTIVES    OF    THE    IMPLEMENTATION OF MONETARY POLICY   The   Central   Bank   of   Somalia’s   medium   and longer-term monetary policy objectives are: Price stability Formulating   and   implementing   monetary   and exchange rate policies. Maintaining    and    enhance    the    value    of    the local currency Maintain financial stability Harmonize   and   coordinate   Government   Fiscal policies with monetary policies.  
Copy right  2015 Central Bank of Somalia, All Rights Reserved.

            MONETARY POLICY

MONETARY POLICY On   the   monetary   policy   management,   the   newly   revived   Central   Bank   of   Somalia   is   in   the process   of   taking   full   charge   of   formulating   and   implementing   monetary   policy.   Speedy resumption    of    taking    charging    of    monetary    policy    by    the    Central    Bank    is    however handicapped by lack of adequate resources, both financial and material. Alongside   the   Somali   shilling,   the   US   dollar   is   also   widely   accepted   as   a   medium   of   large and   high   transactions   even   for   local   trade   exchanges   i.e,   the   economy   is   deeply   dollarized in view of weak confidence in the local currency some of which are counterfeits; Dollarization   not   withstanding,   the   large   issuance   of   the   Somali   shilling   increasingly   fuels price   rises   especially   for   the   low   value   transactions   to   the   extent   that   inflation   runs   in   high double    digits    and    the    Somali    shilling    is    continuously    on    a    depreciation    trend.    The inflationary   environment   is   expected   to   cease   as   soon   as   the   Central   Bank   takes   full charge   of   monetary   policy   and   replaces   the   presently   circulating   currency   printed      by      the private sector. FRAME WORK The   Central   Bank   of   Somalia   Act,   Chapter   II   Art   2   Section   (2)   states   the   functions   of   the Bank: The    Bank    exercise    any    type    of    central    banking    function    and    shall    enjoy    all    the prerogatives   of   a   Central   Bank,   and   without   prejudice   to   the   generality   of   the   foregoing shall   in   particular   have   the   power   to   issue   currency,   regulate   the   banking   and   credit system and manage the external reserves of the Republic OBJECTIVES OF THE IMPLEMENTATION OF MONETARY POLICY   The Central Bank of Somalia’s medium and longer-term monetary policy objectives are: Price stability Formulating and implementing monetary and exchange rate policies. Maintaining and enhance the value of the local currency Maintain financial stability Harmonize and coordinate Government Fiscal policies with monetary policies.  

                                         CBS

Central Bank of Somalia its going to upgrade for IT and Network Technology for Banks. We will use a Core Banking systems and ERP very soon.
CONTACT INFORMATION P.O Box 11, 55 Corso Somalia Mogadishu, Somalia Tel/Fax: +2521241152, Tel: +2521866131 Tel: +2521866151 Email: IT@centralbank.gov.so
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