Somali shilling
shilin soomaali (Somali)
Current 1.000 Somali shilling banknote dated 1996.
ISO 4217 code	SOS
Central bank	Central Bank of Somalia
Website	somalbanca.org
User(s)	Somalia
Symbol	Sh.So.[1]
Coins	1, 5, 10, 50 senti, 1, 5, 10, 20, 50, 100 shillings
Banknotes	5, 10, 20, 50, 100, 500, 1000 shillings

The Somali shilling (sign: Sh.So.; Somali: shilin; Arabic: شلن; Italian: scellino; ISO 4217 code: SOS) is the official currency of Somalia. It is subdivided into 100 senti (Somali, also سنت), cents (English) or centesimi (Italian).

Overview [edit]

Early history [edit]

The shilling has been the currency of parts of Somalia since 1921, when the East African shilling was introduced to the former British Somaliland protectorate. Following independence in 1960, the somalo of Italian Somaliland and the East African shilling (which were equal in value) were replaced at par in 1962 by the Somali shilling. Names used for the denominations were cent, centesimo (plural: centesimi) and سنت (plurals: سنتيمات and سنتيما) together with shilling, scellino (plural: scellini) and شلن.

Banknotes [edit]

On 15 December 1962, the Banca Nazionale Somala (National Bank of Somalia) issued notes denominated as 5, 10, 20 and 100 scellini/shillings.^[2] In 1975, the Bankiga Qaranka Soomaaliyeed (Somali National Bank) introduced notes for 5, 10, 20 and 100 shilin/shillings. These were followed in 1978 by notes of the same denominations issued by the Bankiga Dhexe Ee Soomaaliya (Central Bank of Somalia). 50 shilin/shillings notes were introduced in 1983, followed by 500 shilin/shillings in 1989 and 1000 shilin/shillings in 1990. Also in 1990 there was an attempt to reform the currency at 100 to 1, with new banknotes of 20 and 50 new shilin prepared for the redenomination.^[3]

Coins [edit]

A 10 senti coin, issued in 1976.

In terms of coins, the East African shilling and somalo initially circulated. In 1967, coins were issued in the name of the Somali Republic in denominations of 5, 10 and 50 cents/centesimi and 1 shilling/scellino. In 1976, when the Somali names for the denominations were introduced, coins were issued in the name of the Somali Democratic Republic for 5, 10 and 50 senti and 1 shiling.

Modern history [edit]

Unregulation [edit]

Following the breakdown in central authority that accompanied the civil war, which began in the early 1990s, the value of the Somali shilling was disrupted. The Central Bank of Somalia, the nation's monetary authority, also shut down operations. Rival producers of the local currency, including autonomous regional entities such as the Somaliland territory, subsequently emerged. These included the Na shilling, which failed to gain widespread acceptance, and the Balweyn I and II, which were forgeries of pre-1991 bank notes. Competition for seigniorage drove the value of the money down to about $0.04 per ShSo (1000) note, approximately the commodity cost. Consumers also refused to accept bills larger than the 1991 denominations, which helped to stop the devaluation from spiraling further. The pre-1991 notes and the subsequent forgeries were treated as the same currency. It took large bundles to make cash purchases,^[4] and the United States dollar was often used for larger transactions.^[4]

Somaliland shilling [edit]

The Somaliland shilling is the official currency of Somaliland, a self-declared republic that is internationally recognized as an autonomous region of Somalia.^[5] The currency is not recognized as legal tender by the international community, and it currently has no official exchange rate. It is regulated by the Bank of Somaliland, the territory's central bank. Although the separatist authorities in Somaliland have attempted to bar usage of the Somali shilling, Somalia's official currency is still the preferred means of exchange for many peoples in the region.^[6]

Regulation [edit]

In the late 2000s, Somalia's newly-established Transitional Federal Government revived the defunct Central Bank of Somalia. In terms of financial management, the monetary authority is in the process of assuming the task of both formulating and implementing monetary policy.^[7] Owing to a lack of confidence in the Somali shilling, the U.S. dollar is widely accepted as a medium of exchange alongside the Somali shilling. Dollarization notwithstanding, the large issuance of the Somali shilling has increasingly fueled price hikes, especially for low-value transactions. The new central bank of Somalia expects this inflationary environment to come to an end as soon as the Central Bank assumes full control of monetary policy and replaces the presently circulating currency introduced by the private sector.^[7]

Historical exchange rates [edit]

Free market rates in southern Somalia:

• 2000 SOS/USD in June 1991
• 5000 SOS/USD in June 1993
• 13,400 SOS/USD in March 2006
• 14,406 SOS/USD in August 2006^[8]
• 15,000 SOS/USD in February 2007
• 25,000 SOS/USD in March 2008^[9]
• 35,000 SOS/USD in July 2008^[10]
• 28,250 SOS/USD in March 2009^[11]
• 33,300 SOS/USD in February 2010^[12]
• 27,000 SOS/USD in October 2011^[13]
• 1,600 SOS/USD in March 2013

See also [edit]

• Economy of Somalia
• The History of British Currency in the Middle East

Notes [edit]

References [edit]

External links [edit]

• Somalia at Islamic Banknotes
• Somaliland

v t e  Somalia topics Outline Index History Laas Gaal Land of Punt Walashma dynasty Warsangali Sultanate Adal Sultanate Ajuuraan State Geledi Sultanate Majeerteen Sultanate Sultanate of Hobyo Dervish State Italian Somaliland British Somaliland Ogaden War Rebellion (1986–1992) Piracy Civil War By topic Maritime Military Geography Cape Guardafui Climate Greater Somalia Hafun Horn of Africa Lamadaya Shimbiris Wildlife Governance Constitution Elections Foreign relations Government Prime Minister Human rights LGBT Judiciary Law (Xeer) Military Parliament Political parties Politics President Subdivisions Awdal Bakool Banaadir Bari Bay Galguduud Gedo Hiiraan Middle Juba Lower Juba Mudug Nugaal Sanaag Middle Shebelle Lower Shebelle Sool Togdheer Woqooyi Galbeed Federal Member States   Awdalland   Jubaland   Galmudug   Himan and Heeb   Khatumo   Puntland   Somaliland Economy Central Bank Companies Economic history Mineral industry Oil industry Shilling (currency) Telecommunications Transportation Society Culture Anthem Architecture Art Cinema Coat of arms Cuisine Diaspora Education Flag Literature Music Religion Islam Christianity Sports Demographics Ethnic groups Somalis Benadiris Bravanese Bantus Bajunis Italian Somalians Languages Arabic Bravanese Maay Somali Book Category Portal

v t e Historical currencies of Somalia Italian East African lira 1940–early 1941 East African shilling 1941–1962 Somali shilling 1962–1994 Somaliland shilling 1994–present