Founded in 1994, the Bank of Somaliland is the central bank of the Republic of Somaliland. The Bank’s mission is to promote the wellbeing of the people of the republic of Somaliland by maintaining monetary and financial stability. It is 100% owned by the Government of Somaliland but it is constitutional autonomous institution.
Bank of Somaliland Headquarter is located on 26 June district of Hargeisa in front of central police station; Road #1. The Bank has 12 branches throughout the whole country.
Management of the Bank of Somaliland:
The bank of Somaliland is under the management of board of directors nominated by the president o the republic of Somaliland and is composed of:
1. The Governor and Chairman of the Board,
2. The Deputy Governor and Deputy Chairman of the Board,
3. The director general and the secretary of the board
4. Not less than 5 and more than 8 other members
What We Do
The Bank of Somaliland conducts all its activities with the aim of fulfilling its mission. These activities are carried out under the mandate of the Central Bank Act-No 54/2012 and other legislature.
The Bank’s core activities are:
* Issuance of Somaliland’s national currency/legal tender, the Somaliland Shilling (SLSH)
* Regulation of money supply through Monetary Policy
* Banker to the Government of Somaliland
* Banker to Commercial Banks
* Supervision and regulation of Financial Institutions
* Management of the country’s external/foreign reserves
* Adviser of Government on financial and economic issues
The Bank of Somaliland’s mission is to promote the wellbeing of the people of the Republic of Somaliland by maintaining monetary and financial stability.
That mission starts with the most recognizable of the Bank’s responsibilities – maintaining public confidence in the bank notes we all carry in our pockets and wallets. The Bank designs and issues durable, high quality bank notes, containing advanced security features that are easy to check and resilient to counterfeiting.
But confidence in our money is about more than just the bank notes we use. It is also about protecting the value of that money over time, so that households and businesses can plan, invest, save and spend with confidence. The Bank plays a vital role in maintaining this confidence through its monetary stability objective.
As the financial crisis revealed, however, price stability alone is not enough to ensure overall economic stability. Financial stability – public trust and confidence in financial institutions, markets, infrastructure, and the system as a whole – is just as important.
To promote the safety and soundness of individual financial firms, the financial supervision and Regulation Unit of the Bank regulates and supervises roughly 300 different financial institutions including banks, remittance companies, foreign exchange dealers, micro-finances, insurers and major investment firms. In short, this means working to prevent future financial crises, or reduce their frequency and severity.
The Bank of Somaliland also fulfils several other financial stability and regulation roles:
* We influence foreign exchange by taking open market operations to protect the value of the domestic currency(SLSH) at times of depreciation
* license and supervise banks, insurers and other financial institutions and create favorable conditions for the expansion of banking, insurance and other financial services
* We work to safely resolve failing financial institutions.
While the Bank’s responsibilities may be broad and wide-ranging, there are important benefits to having them housed within a single institution. Many of these responsibilities require common skills, information and analysis to fulfill. And there are often strong interactions among them, which require consistent, timely decision-making and effective management of any trade-offs.
The Bank’s job is to fulfill all of these responsibilities by working together in a coordinated way. By doing so, we can maximize the impact of each of our policies – always with a single, timeless mission in mind – to promote the good of the people of the republic of Somaliland