Muse Omar Jama, 49, sits in his Mogadishu office surrounded by stacks of banknotes. He complains that a government decree requiring acceptance of the shilling is not being enforced. The banknotes are now so tattered that even buses refuse them, as a dollarised economy and mobile phone payments drive up the cost of essentials.
From Trader to Struggle
Jama began working as an exchange trader in Mogadishu’s Bakara market in 1994, when US troops withdrew. Over three decades later, he still does the same job but wonders how much longer it will last. He shares a one-room office with other traders, where the noise of bargaining has faded. Their battered metal safes, filled with millions of Somali shillings, are locked. The paper fortunes inside have suddenly become worthless. “It’s like we went bankrupt overnight,” he says.
Businesses Reject Shillings
Last month, tired of greasy, ripped banknotes, a handful of traders in Mogadishu decided to stop accepting them. Soon, businesses, shops, and bus drivers followed suit, and the decision spread to regions outside the capital. The impact on prices was immediate: everyday expenses such as groceries, medicines, and public transport surged. A small bag of powdered milk more than doubled in price.
Dollarisation and Remittances
Somalia is one of the most remittance-dependent countries globally, with the diaspora sending billions annually—primarily in US dollars. These funds flow through informal money-transfer operators known as hawala. The heavy presence of international bodies, including the UN, aid organisations, and security firms, has further reinforced dollar use. Somalia has not printed banknotes since 1991, when the government of Siad Barre was overthrown, and the central bank ceased operations. The 1,000 Somali shilling note became the only officially recognised money in circulation.
Impact on the Poor
Before the revolt, people from all walks of life came to Jama’s office to exchange shillings for dollars via mobile money or vice versa. Now, his life has been turned upside down. “Prior to the rejection, I made enough to cover basics like rent, electricity, and water,” he says. He now walks three miles to work because buses refuse shillings. “The rejection has hurt poor people the most, even beggars. They used to receive a couple of thousand shillings from passersby, but now those notes are worthless.”
Asha Ali Ahmed, 39, who sells vegetables at her mother’s former stall, shares similar concerns. “We were raised off the earnings from this stand,” she says. “I would take shillings to Afgoye to buy vegetables, then return and sell them. Now farmers refuse shillings and request mobile money, increasing prices. Vegetables were already expensive due to drought; the rejection only exacerbated our situation.”
Drought and Hunger
Somalia is enduring a dire drought causing widespread crop failures, raising food prices and disrupting livelihoods. According to the World Food Programme, nearly a third of the population—6.5 million people—face severe hunger, and 2 million children under five suffer acute malnutrition. “Most customers could only afford purchases in shillings. Paying with mobile money means they pay more, and most can’t afford it,” says Ahmed.
Government Decree Ignored
In a televised press conference, the federal government announced that rejecting the Somali shilling would be a crime and ordered traders to accept it. But Jama and others doubt enforcement. “The decree is good, but we need action. There are no police helping us. The government should hold businesses accountable and impose fines,” he says. Across the street, guards stand watch behind mounted machine guns at the ministry of foreign affairs. “Millions are going to suffer,” Jama says quietly. “More families will be pushed into poverty.”
