Banking in Somalia
In 1920 Banca d’Italia opens a branch in Mogadishu. This was the first bank of its kind in Somalia.
1938 Banco di Napoli opens a Branch in Mogadishu.
1920-1940 Banca d’Italia and Banco di Roma establish branches in Mogadishu, Kismayo and Merca.
1952 National Bank of India opens branches in Berbera and Hargeisa.
1960 The Republic of Somalia after unification (of North and South) establishes the National Bank of Somalia (Banca Nazionale Somala) following decolonization.
1975 The Somali Government renames the Banca Nazionale Somala (National Bank of Somalia) to Central Bank of Somalia.
1990 The Central Bank of Somalia ceased operation along with the Commercial and Savings Bank of Somalia due to break down of government as the result of the civil war.
2009 The Transitional Federal Government reopened the Somali Central Bank.
When financial institutional collapsed in 1990 due to war, business savy Somali entrepeneurs filled the void left and created money transfer industries that have made them millionaires today (see Dhabshiil)
What is interesting from all of this is how the Somali shilling has been able to survive without a government for over 20 years. It’s quite remarkable as noted by The Economist. The Somali Shilling has been in use in what is Somalia today since 1921.