The Somali Shilling is now equal to the West African CFA Franc

[Mohamedamiin120]

Many do not know this but the valuation of the Somali shilling has grown over the past week (likely due to investors jumping ship from the Ethiopian Birr, which has been devalued consistency for the past year). I did not expect it to jump to the level of the CFA Franc- would be great if this was a permanent thing but I doubt it.

The jump is bigger then the jumps in 2022-2023, I would like to see the reaction from exporters before I comment on this (obviously, as we all know, exporters like a weaker currency while importers like a stronger one).

 

[bobby_hill-Punt]

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[SpaceyCadet]

is this a good thing or is it complicated though? i noticed that the 1 naira is 0.39 shilling. 1 congolese franc is 0.62 naira?

also the jump seems bigger than 2024:

 

[Mohamedamiin120]

is this a good thing or is it complicated though? i noticed that the 1 naira is 0.39 shilling. 1 congolese franc is 0.62 naira?

also the jump seems bigger than 2024:
View attachment 375551

Yh I put the wrong year in, it was 2022-2023 that I was talking about.

And yes I was wrong this is a bigger jump!!!

 

[Testo 21]

i heard in the 80's 1 USD equivalent to 12 Somali shillings

 

[Radical]

One Somali shilling is also equivalent to one bread at the long food queues in USSR famines

 

[TheLand]

Is the Somali shilling even used much in Somalia itself?

 

[Mohamedamiin120]

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The Somali Shilling has maintained a 2:1 ratio over the Naira for the longest time, actually right now I think it's 2.5:1

The Naira being less then the Somali Shilling is actually a pretty well known fact in Nigerian circles because ppl attack Tinubu for it quite regularly.

 

[Espaa_]

1 dollar is 555 somali shillings.

yk what that acc good for a people who had a 40 year war

 

[Mohamedamiin120]

One Somali shilling is also equivalent to one bread at the long food queues in USSR famines

Stop derailing the thread niqqa.

Also the last Soviet famine was in '47 (caused by the Nazis burning crops).

 

[Mohamedamiin120]

i heard in the 80's 1 USD equivalent to 12 Somali shillings

No during the 80s the Somali shilling went into a freefall due to IMF and World Bank policies designed to maximize export potential. From the ratio of USD to Somali Shilling being 1:6 in 1981 to 1:105 in 1987.

A really underestimated reason why '91 happened, Kacaan listened to Western fools and paid the price.

Here is the table if you wanna see yourself: https://fred.stlouisfed.org/data/FXRATESOA618NUPN

 

[Mohamedamiin120]

Is the Somali shilling even used much in Somalia itself?

Somali shilling used for smaller 'day to day' transactions (eg: buying flour) while the USD is used for larger, more expensive transactions (eg: buying a fishing boat).

On foreign trade (IN PORTS) people export and import in USD because it's easier to use, more foreign partners trust it, and it's harder to counterfeit. What do Somalis use for land trade? I have no clue for Kenya or Djibouti but trade along the artificial border [Galbeed] is done in USD, Somali Shilling, and Birr. With Birr taking more of a back seat more and more as it get's devalued by Addis (even tho right now it's more valuable then the Somali Shilling- it's way less stable then it tho)

 

[Zek]

Sorry to burst your bubble but that’s actually false. The Somali shilling is around 27000 to 1$ and it is rarely used, dollar is more used. The official rate is not used anywhere, even transfers from abroad come in dollars, not to mention its not used past Galkacyo, only in Mogadishu.

 

[Idilinaa]

I think this might have to do with the central bank's current preparations to start printing it.

The Somali shilling has the potential to become significantly stronger once the central bank reintroduces new notes in 2026. The key reason is the large and steady inflow of foreign exchange generated by transnational business networks, repatriated profits, trade, exports, foreign exchange dealers, and FDI from Somalis abroad. These inflows provide a deep reserve base that can stabilize and support the value of the currency.

The reintroduction will also resolve a long standing issue, the flood of counterfeit notes after 1991 that eroded trust in the shilling and made it impractical for daily use. By replacing those with secure new notes, the central bank will restore credibility to the currency and anchor it to actual economic strength

Heck i wouldn’t be surprised if the Somali shilling evolves into a de facto business currency across parts of East Africa, given the vast Somali commercial networks that span the region and remain linked back to Somalia. These networks already dominate key trade corridors, certain markets, and financial flows, creating the infrastructure for cross-border currency use.