98% of Somalia’s money supply is counterfeit

A Somali man holds a wad of tattered 1000 shilling notes

Worn out Somali shillings, via the Daily Nation

Somalia lacked any central governance from 1991, when Siad Barre’s regime collapsed, to 2004, when a relatively weak transitional government was established.  The government shed its “transitional” title in 2012, but still struggles to project authority outside of Mogadishu.

One casualty of this set of weak and contested governance structures has been the money supply.  New notes haven’t been issued since 1991, and the IMF estimates that 98% of the currency in circulation is counterfeit.  In practice Somalis have largely got around this by switching to mobile money.

The country is now looking for currency specialists to help it issue new shilling notes.  If you know someone who fits the description in Nairobi, let them know!

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