Senate Seeks Finance Ministry Clarification on Central Bank Law Changes

GOOBJOOG NEWS | MOGADISHU: Somalia’s Senate has sought further clarification from the Ministry of Finance on proposed amendments to the law governing the Central Bank, as lawmakers examine changes that could shape the country’s monetary policy and financial regulation.

The Senate Committee on Economic Affairs, Finance, Trade, Industry, Communications and Tourism met Deputy Finance Minister Abdiqafaar Cilmi Xaange and ministry officials on Tuesday to discuss the proposed revisions to Central Bank Law No. 130 of 2012.

Committee members requested explanations on several provisions, particularly the terminology and wording used in the draft, saying the clarifications would help them assess and refine the proposed legislation.

The review comes amid wider parliamentary debate over the role of the Central Bank, the regulation of Somalia’s financial sector and efforts to restore the national currency.

During earlier deliberations in the House of the People, lawmakers raised questions about provisions relating to Islamic banking principles, safeguards for the Central Bank’s independence and the balance between the bank’s authority and government oversight.

The proposed changes have also drawn attention to plans to reintroduce Somali shilling banknotes. MPs questioned the economic basis for a proposed exchange rate of 100 Somali shillings to one US dollar and sought further details about the design, denominations and production of the currency.

The debate reflects the broader significance of the legislation as Somalia works to strengthen its financial institutions and develop a more effective regulatory framework for the banking sector.

Law No. 130, provides the legal framework for the Central Bank. The proposed amendments are intended to update that framework, but remain subject to parliamentary scrutiny and approval.

The Senate committee’s consultations form part of that review process, with lawmakers seeking to clarify the draft before proceeding with further consideration.