The government of Somalia has accepted the in-evitable, Modern Banking Laws have been passed 'quietly' in the nation as not to 'stir up' these throw-backs from the 7th century who will start crying 'haram' this and 'haram that'. All banks are ordered to display their effective interest rate at their branches and offices and from time to time deliver reporting on 'interest rates' so it can be monitored and managed by the Central bank of Somalia.
Interest rates are critical for investors depositing their capital so the bank has 'currency' to begin loaning the locals because due to inflation of the market, it is critical for an investor return above inflation rates and a profit margin or else it's pointless exercise for investors to create 'deposit' accounts which the bank can pull from.
Once the government gets a hold of the local currency and destroys all 'fake' notes and the market is secured with one 'tender', it will be required to know how much to 'print' to keep up with the pace of investors capital. For example if 500 million has been created in deposit accounts for a given year, the govt will know to 'print the equivalent value in Somali shilling' and hence reporting of investors and interest rates are critical to ensure the nation doesn't have over-supply or under-supply of local currency to keep up with investors.
Plus the govt will need to also 'print' enough currency to support the market 'trade' for each given year and work out the 'growth or decline' in trade which also needs to be monitored 'sector by sector' and their level of 'growth and losses' each year to keep Somali currency in-line with the level of business 'activity'. As u know over supplying a currency where the business activity is lower, leads to prices increasing or 'sicir' because there is more currency circulating then actual 'products'. There is no point printing 1 million dollars when the products in the market do not exceed '100k' in value. It will lead to business people to 'increase the price' to keep up with the money increases. So what may have been sold for $10 dollars in a normal market with a currency that matches the goods available, could be sold 10 times higher if you increase the currency by 10 times more then what is available.
That is why market is measured by the 'product' not necessarily the 'currency' unless it's foreign exchange and even then the 'currency' only is as strong as their 'products in their economy'. If Somalia market is 7 billion each year in terms of 'product' there is no point printing 100 billion dollars, it will cause everything to increase 10 times over to match 100 billion dollars. Did anything change in terms of growth? nope you just end up paying more for the same product nothing else.
We know what happens if a 'currency' under supplied, there will be 'more goods' then 'currency' available, they will end up selling it 'cheaper' in order to get some cash from the minimal amount in the market which isn't good either. That's why it should always be 'even' or at 1-3% increase or decrease each year in currency production but that needs 'data monitoring' and 'central bank' that is institutionally strong and equipped with 'market' data because the market determines what amount of currency is going to be printed.
I support this idea of conventional banking but we should also encourage other types of banking like 'shariah' also if it 'works' and have them compete and not have any type of bank have a monopoly. Without the banking, it's impossible to discuss market economy. Plus we need to start educating on 'mass scale' about loaning from the bank to buy properties or open up business and we need to 'restrict' hawalas in our country by FORCE so people have to fend for themselves rather then rely on never-ending charity which is the worst form of ribbah as it leads to eventual financial slavery not banking because thru banking it's not life-long like charity.