At present, the only bank note in circulation in Somalia is the 1 000 shilling – smaller denomination fell away during the war and thereafter, partly due to the risk factor of carrying bulky bundles of notes, according to Quartz Africa. As a result, the country is home to one of the world’s most active mobile money markets, with nearly 40% of the population having mobile accounts. Just 8% have a formal bank account.
After 25 years, however, plans are under way to resume printing banknotes in smaller denominations. However, with 98% of the existing notes considered by the IMF to be fake, the Somalian government will have to clarify the purchasing power of the new notes in comparison to the already circulating ones.
