Somali exchange traders protest worthless shilling in Mogadishu
Updated
Updated · The Guardian · May 11
Somali exchange traders protest worthless shilling in Mogadishu
9 articles · Updated · The Guardian · May 11
On 4 May, dozens marched with old notes after businesses, shops and bus drivers stopped accepting worn Somali shillings, while the government later declared such rejection a crime.
The move accelerated dollarisation, forcing more payments into mobile money and sharply raising costs for groceries, medicines, transport and vegetables, with traders and low-income residents hit hardest.
Somalia has not printed banknotes since 1991, and drought has deepened the crisis; the World Food Programme says 6.5 million people face severe hunger and 2 million young children acute malnutrition.
As its currency collapses, can Somalia leapfrog to a digital economy or will this abandon the poor?
With US laws targeting hawala, will the diaspora's financial lifeline to Somalia be cut during this crisis?
Why is humanitarian aid to Somalia plummeting just as famine and economic collapse create a perfect storm?
From Shilling Rejection to Digital Reform: Somalia’s 2026 Currency Crisis and the Fight for Financial Inclusion
Overview
In May 2026, Somalia faces a severe crisis as the Somali shilling is widely rejected, causing significant public distress. Individuals and businesses struggle to carry out daily transactions, with money exchangers like Muse Omar Jama unable to convert shillings into US dollars or mobile money. This inability to exchange currency directly impacts people's access to essential services and commerce, fueling widespread frustration and sparking public outcry. The crisis is rooted in decades of structural weaknesses, including unregulated dollarization and a historically weak central bank, which have eroded trust in the national currency and led to the current economic turmoil.