Somalia's central bank makes iconic comeback after decades of tumbling
MOGADISHU, Somalia - Somalia could be crawling back to financial stability, it has emerged, following the significant comeback of the Central Bank of Somalia [CBS] which has been returned to Global Payments Week [GPW] in Morocco's historic town of Marrakech, an indication of the strong financial system in the country.
For the last three decades, the country has struggled to make an impact in Global Financial systems due to little circulation coupled with corruption and fiscal indiscipline. The country is actively engaged in the fight against Al-Shabaab militants whose fiscal habits have also weakened the country's financial stability.
Already, the Central Bank of Somalia has showcased its National Payment System [NPS] after the implantation of International Bank Account Numbers into all transactions within NPS, it has emerged. Somalia is one of the poorest countries globally according to statistics by the World Bank.
For starters, Global Payments Week is an event co-hosted by the World Bank and the Committee on Payments and Market Infrastructure of the Bank for International Settlements. The event brings together financial professionals across the world for networking and learning about different cultures.
This year's main topics include Future-Proofing the National Payment Systems, Central Bank Digital Currency [CBDC], Expanded Usage of Digital Payments, Crypto-Assets, Open Banking, and The Changing Landscape of National Payments System Oversight, World Bank notes.
Since 1991, Somalia has struggled to make a fiscal impact on the global stage given that the collapse affected many financial sectors. The banking system has not yet flourished like it used to but at least, the country is now having proper regulations that control the finance sector.
The adoption of the IBAN in Somalia is anticipated to streamline payment processing, mitigate operational risks, and reduce delays in international transfers. This is expected to smoothen the process of remittances, especially from the Somali diaspora, whose contributions have been essential to the country's economic resurgence.
New branches of the central bank of Somalia will also be established in different parts of the country, particularly in the regional administrative capitals of various states of Somalia. This, CBS says, will decentralize "fiscal policy and discipline" for easy access to members of the public and financial lenders in Somalia.