Hargeisa – In a significant move to bolster economic stability, the Central Bank of the Republic of Somaliland and the United Money Transfer Associations have formally signed a reconciliation and cooperation agreement. This landmark deal resolves outstanding issues related to the ongoing restructuring of the nation’s money transfer sector.
The agreement, finalized in a ceremony today in Hargeisa, specifically addresses key points of contention, including license fees for operators and the management of reserve funds as mandated by the new Money Transfer Management Regulation (Lr.03/2024).
Senior officials from both the Central Bank, led by its Deputy Governor, and the leadership of the United Money Transfer Associations were present at the signing. Both parties hailed the accord as a critical step forward for the nation’s economy.
The Deputy Governor of the Central Bank emphasized that the agreement aims to strengthen Somaliland’s financial system, accelerate the enforcement of fairness and integrity among operators, and foster a stable business climate to boost public confidence.
Echoing this sentiment, the Chairman of the United Money Transfer Associations confirmed their commitment to implementing the terms of the deal. He also expressed satisfaction with the resolution of recent discussions, stating that the matter has been conclusively settled. Furthermore, he issued a directive to all money transfer operators in the country to promptly update their licenses in compliance with the new framework.
Forged through constructive dialogue and mutual understanding, this agreement is set to serve as a cornerstone for the Central Bank’s broader plans to reorganize and modernize Somaliland’s money markets.
