The Bank of Somaliland was established in 1994. It acts as both a central bank

Central bank

A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...

 and a commercial bank

Commercial bank

After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...

 for Somaliland

Somaliland

Somaliland is an unrecognised self-declared sovereign state that is internationally recognised as an autonomous region of Somalia. The government of Somaliland regards itself as the successor state to the British Somaliland protectorate, which was independent for a few days in 1960 as the State of...

, a de facto independent republic which is recognized as a part of Somalia

Somalia

Somalia , officially the Somali Republic and formerly known as the Somali Democratic Republic under Socialist rule, is a country located in the Horn of Africa. Since the outbreak of the Somali Civil War in 1991 there has been no central government control over most of the country's territory...

. The monetary authority

Monetary authority

Monetary authority is a generic term in finance and economics for the entity which controls the money supply of a given currency, and has the right to set interest rates, and other parameters which control the cost and availability of money...

 was provided for in the constitution of Somaliland

Constitution of Somaliland

The Constitution of Somaliland was adopted by the Houses of the Parliament of Somaliland on 30 April 2000. The constitution was approved in a referendum held on May 31, 2001 when 97% of the voters voted in its favour. Its re-published version consists of a Preamble and five main chapters each of...

. It has a head office branch in Hargeisa, seven other branches, and four foreign exchange offices in the airports at Hargeisa

Hargeisa

Hargeisa is a city in the northwestern Woqooyi Galbeed region of Somalia. With a population of approximately 2 million residents, it is the second largest city in the country. Hargeisa is the capital of Somaliland, a self-declared republic that is internationally recognized as an autonomous region...

, Berbera

Berbera

Berbera is a city and seat of Berbera District in Somaliland, a self-proclaimed Independent Republic with de facto control over its own territory, which is recognized by the international community and the Somali Government as a part of Somalia...

, Borama, and Gabiley

Gabiley

Gabiley is a city in the northwestern Woqooyi Galbeed province of Somaliland, a self-declared republic that is internationally recognized as an autonomous region of Somalia.Gabiley is located 54 km west of Hargeisa, the capital of Somaliland...

.

The bank aims, in line with Article 3 of the Constitutive Law of Somaliland Bank to:

• maintain price
  Inflation
  In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a...
  
   and exchange rate
  Exchange rate
  In finance, an exchange rate between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency...
  
   stability
• promote credit and trade condition which support balanced economic growth
  Economic growth
  In economics, economic growth is defined as the increasing capacity of the economy to satisfy the wants of goods and services of the members of society. Economic growth is enabled by increases in productivity, which lowers the inputs for a given amount of output. Lowered costs increase demand...
  
  
• support the economic and financial policies of the government
  Government
  Government refers to the legislators, administrators, and arbitrators in the administrative bureaucracy who control a state at a given time, and to the system of government by which they are organized...
  
   where possible

See also

• Central banks and currencies of Africa
  Central banks and currencies of Africa
  There are two African currency unions associated with multinational central banks; the West African Banque Centrale des Etats de l'Afrique de l'Ouest and the Central African Banque des Etats de l'Afrique Centrale...
  
  
• Economy of Somalia
  Economy of Somalia
  According to the CIA and the Central Bank of Somalia, despite experiencing civil unrest, Somalia has maintained a healthy informal economy, based mainly on livestock, remittance/money transfer companies and telecommunications. Due to a dearth of formal government statistics and the recent civil...
  
  
• List of central banks
• Somaliland shilling
  Somaliland shilling
  The Somaliland shilling is the official currency of Somaliland, a de facto independent republic which is recognized as a part of Somalia. It was introduced on 18 October 1994 at one new Somaliland shilling to 100 Somali shillings...
  
  

External links

• Official site: Bank of Somaliland