Raxanreeb Online Mogadishu: The Central Bank of Somalia (CBS) makes history by inaugurating its first financial stability committee, geared toward strengthening macroprudential oversight, monitoring risks, and safeguarding the resilience of Somalia’s financial system.

The governor of the central bank of Somalia, Abdirahman Mohammed Abdullahi, applauded the move, noting that it will be a game changer to the financial system in Somalia.

“The committee will safeguard stability and identify risks and coordinate policy responses that will protect the financial sector and the economy,” he said.

The committee has an uphill task to undertake in Somalia to achieve a streamlined financial system; their key mandate will be to advance the national currency reforms program, integrating money transfer businesses fully into the national payment system, to curb money laundering and terrorism financing.

The committee’s inaugural discussion on the 2024 Financial Stability Report highlighted stability of 19% for the capital adequacy as the banking sector’s assets reached US$2.0 billion.

Profitability also saw a major improvement, with the baking sector recording a profit of US$9.0 million in 2024.

The committee also reviewed systematic vulnerabilities arising from global shocks and climate risks However, it was noted that digital remittance channels remain central to the Somali economy and fintech disruption, and further scenarios to strengthen resilience were discussed.