Hargeisa – The Central Bank of the Republic of Somaliland has announced a major regulatory initiative for its financial sector, launching a new registration and licensing process for all currency exchange operators effective October 18, 2025.
The initiative is enacted under the authority of the Central Bank Law No. 54/2012 and the Foreign Currency Exchange Regulation No. 03/2024, and is consistent with the free market principles enshrined in Somaliland’s constitution.
According to the Central Bank, the primary goals of this move are to:
· Protect the value of the Somaliland Shilling.
· Eliminate black market activities.
· Ensure fairness, equality, and transparency within the currency exchange market.
To achieve these objectives, the new framework will categorize exchange operators into different tiers based on their financial capacity and impact on the national economy. It also enhances oversight of transactions to guarantee efficient and accessible services for both Somaliland Shilling and US Dollar exchanges.
A key requirement mandates that licensed operators must provide both currencies to the public. This measure is designed to prevent exploitative practices, such as hoarding hard currency (US Dollars) and diverting it to the black market, which imposes additional costs on consumers.
The Central Bank will grant licenses exclusively to individuals and entities that meet its strict regulatory standards. License renewals are mandatory, with no exemptions permitted.
The Bank emphasized its collaborative approach, noting that it worked with the WADAJIR Exchange Operators Association in developing these reforms. The public is encouraged to direct any concerns through official legal channels.
All exchange operators with expired licenses are reminded that the renewal deadline is October 30, 2025. The Central Bank has stated that failure to comply will result in the automatic forfeiture of existing licenses.
This comprehensive initiative underscores Somaliland’s commitment to building a modern, transparent, and reliable financial system, thereby ensuring greater economic stability and public trust in the formal currency exchange market
