Regulatory Alerts2025-08-05
Central Bank of Somalia Act, 2012
The Central Bank of Somalia Act, 2012, issued by the Somali government, establishes the Central Bank as an autonomous legal entity with perpetual succession, tasked primarily with maintaining domestic price stability and fostering a stable financial system. It grants the Bank exclusive authority to issue legal tender, manage foreign reserves, license and supervise banks and financial institutions, and act as fiscal agent for the government while prohibiting direct lending to public entities except under temporary emergency provisions. The Act defines governance through a Board of Directors led by a Governor and Deputy Governor appointed by the President, outlines disqualifications for board members, mandates confidentiality in proceedings, and exempts the Bank from taxation while requiring public disclosure of monetary policy decisions and annual reports.