Bank Functions
The Bank of Somaliland was mandated to operate as a central bank as well as a commercial bank. However, since its inception the central bank functions are limited. Mostly the bank provides commercial and treasury services and in a nutshell following are the services it provides:
- – Printing the national currency
- – Deposit of Government Treasury
- – Opening Accounts to the private customers and government employees
- – Licensing the private banks, remittances and money exchange agents
- -Supervises financial institutions such as: commercial Banks, remittance and exchange dealers
- – Fighting against inflation
- – Participation of national budget preparation.
The Bank’s responsibilities are broad and touch nearly every aspect of the country’s financial system. Its work begins with printing the national currency and safeguarding its value, while also managing the Government Treasury deposits and providing account services to both private customers and government employees. It is responsible for licensing private banks, remittance companies, and money exchange agents, and for supervising financial institutions such as commercial banks, remittance operators, and exchange dealers to ensure stability and compliance. The Bank also takes active measures in fighting inflation and plays a role in the preparation of the national budget, contributing its expertise on fiscal and monetary matters.
These activities are organised into five main areas of focus: Monetary Policy, Bank Supervision, National Payment, Banking Services, and Currency Services—each forming a core pillar of the Bank’s mandate.
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