The Central Bank of Somaliland and Wadajir Association of Money Changers have signed an agreement resolving disputes over licensing and deposit fees for new forex traders.
The signing ceremony in Hargeisa, Monday, crowned the prolonged talks after both sides agreed on the amounts to be paid for licensing, renewals, and deposits — an issue that had previously sparked widespread debate among forex traders across Somaliland.
The bank welcomed the deal stating that it formed part of ongoing reforms to modernize the exchange system and restructure foreign currency markets, ensuring that Somaliland’s financial system operates transparently, efficiently, and in line with national laws and regulations.
Deputy Governor of the Central Bank, Hamse Khayre, said the reform process had engaged more than 250 money changers and helped clarify compliance levels within the sector.
He explained that the purpose of the deposit requirement was to stabilize the currency market and prevent inflation.
“The deposits collected by the bank are not for the government — they remain part of a stabilization fund meant to keep the market steady and protect millions of dollars in circulation,” said Deputy Governor Khayre.
The Wadajir Association of Money Changers also expressed satisfaction with the discussions, describing the agreement as a breakthrough that ends the long-standing dispute with the Central Bank, particularly over licensing fees and the new registration requirements for forex dealers.
The Central Bank had long maintained that the new regulation was aimed at reforming and modernizing the foreign exchange market, essential to strengthening financial oversight and creating a stable and transparent system.
