Forex traders in Somalia were shocked Tuesday following an order by the Central Bank to close forex accounts in commercial banks with immediate effect.
The notice from the Central Bank which follows a Board of Directors meeting in October directed all
commercial banks to close accounts owned by forex trading companies dealing a blow to the budding
forex business in the country.
“All commercial banks must, with immediate effect close bank accounts owned by forex trading
companies and submit their names and all monies held in the accounts,” the order signed by Deputy
CBC Governor Maryam Abdullahi Yusuf read in part.
The directive comes amid fast growing forex business in Mogadishu and other parts of the country
where potential traders pay between $500 and $1000 for a monthly return of about 40%.
Forex trading like other financial sectors fall within the remit of the Central Bank in terms of regulation