The Central Bank of Somalia was established in 1968 as the country’s financial regulatory institution. After years of insecurity, fragility, and economic decline due to the collapse of the state in 1991, The Central Bank was revived and strengthened with the CBS Act of 2011. The Act laid a new foundation to regulate and boost the country’s finance sector and facilitate economic growth.
The Central Bank of Somalia is undertaking a transformative journey to meet its core functions and be a policy-oriented institution. This has led to drafting a strategic plan for the bank that charts the progress to be achieved between 2020-2024. There is also a transitional plan that provides the roadmap to restructure the bank and reform the financial sector of Somalia. The strategic goals include the establishment of monetary policies and regulatory frameworks that support financial sector reform and stability.
The bank has recruited highly qualified senior executives to head the 3 functional groups that have been created as part of the restructuring plans. The bank has also established various policies such as Human Resource policy, Communication Strategy, IT policy and Procurement policy, laying the foundation for CBS to operate as a policy-oriented institution. Committee-based governance structures are also being created, forging the path for improved governance and transparency. This is an exciting journey. Stay tuned for the many more achievements to come!
