A growing number of businesses across the Somali capital have stopped accepting the 1,000-shilling note, the country’s last widely circulating banknote, throwing daily commerce into disarray and raising fears of a widening currency crisis.
Traders in key markets and public transport operators in districts such as Heliwaa refused to take the worn-out notes on Monday, citing their dilapidated condition. Many shopkeepers are now demanding payment in U.S. dollars or through mobile money platforms, leaving low-income residents—who rely on cash for transport and basic goods-stranded.
One local resident told Dalsan TV that the 1,000-shilling note is “torn and unusable”, adding, “We see this as an attempt to completely remove the 1,000-shilling note from circulation.” Commuters reported being turned away from public buses after drivers refused the local currency.
The sudden rejection is the latest sign of deep distrust in Somalia’s monetary system. The country has not printed new banknotes since the state collapsed in 1991, and nearly 98% of shilling notes in circulation are estimated to be counterfeit. While the Central Bank has announced plans to reintroduce a redesigned shilling backed by a currency board arrangement, the reforms have faced repeated delays, leaving ordinary Somalis to bear the brunt of an unstable cash economy.
For now, the shilling’s rejection in parts of Mogadishu marks a critical juncture, as residents and traders alike await a long-promised monetary overhaul.