One of the provisions of the National Constitution
of the Republic of Somaliland
is the establishment of a Bank to carry out Central Banking functions. The bank of Somaliland (Baanka Somaliland) was thus inaugurated in 1994 together with appropriate Banking Laws, to insure that Banking
regulations are carried out to the letter.
Board of Directors has accordingly been
appointed together with a Governor of the Bank, Vice-governor, and a Director General. In addition, the Bank of Somaliland
besides its functions as Central Bank, runs the activities of Commercial sector.
THE OBJECTIVES OF THE BANK
The Bank's main objectives are detailed
in Article 3 of the Constitutive Law of Somaliland Bank as follows: Fostering Monetary stability maintaining the internal
and external values of the Somaliland Currency and promoting credit and exchange conditions conductive to the balanced growth
of the economy of the Republic and within the limits of its powers, it shall contribute to the financial and economic policies
of the state.
The Board of Directors is the highest policy
making body of the Bank. Its powers, among others, include establishing and closing of branches; recommending an increase
in capital determining net annual profit; establishing the general terms and conditions of service for the bank's staff and
general rules on its . Expenditure; proposing the distinguishing features characteristics and amount of banknotes and coins
to be issued; deciding on the general terms of external reserves; granting and revoking bank licences; deciding upon general
terms and conditions for credit controls to authorised banks; approving the annual report and accounts of the bank.
The Board consists of seven members, comprising:
-
The Governor (Chairperson);
-
The Director General (Deputy Chair) and
-
Five members of which three members are prominent private
businessmen.
THE OPERATIONS OF THE BANK
The Bank of Somaliland performs both the
functions of Central Bank of the Republic of Somaliland and the Services of the Commercial Bank.
THE DEPARTMENTS OF THE BANK
The departments of the bank are as follows:
1. Accounting Department
2. Audit and Supervision Department
3. Personnel Department
4. Loans and Economic Research Department
5. Technical Department
6. Secretarial Department
7. Central Cash Department
Functioning Branches & Exchange offices The main Branches and Exchange Offices of the Bank are as
follows:
01. Head Office (Hargeisa)
Tel:
253-210005 Ext. 3000/3024 252-213 4500
Fax: 252-213 4551
02.
The Main Branch (Branch Number 1 in Hargeisa)
03.
Main Foreign Exchange Branch (Hargeisa)
04. Berbera - Tel: 253-212003 Ext 2016, Fax: 253-212000
05.
Burao Tel: 223 4500 - 4479
06.
Borama Tel: 252 8- 21091
07.
Gabiley Tel: 252-2623231
08. Eri Gabo Tel: 252-219 4590
09. Foreign Exchange at Hargeisa Airport
10.
Foreign Exchange at Berbera Airport
11. Foreign Exchange at Borama Airport
12. Foreign Exchange at Gabiley Airport
Currency
In October, 1994 with reference to the "Law
of the establishment of the Bank of Somaliland" the Bank has formally introduced, for the first time, the Somaliland currency. While the cabinet ministers unanimously approved and administrative decree promulgating
the Somaliland Shilling as the official currency of the Republic and accordingly announcing a three-month-long period for
the eventual conversion of the old currency (Somali Shilling).
