The Somali Shilling (SOS) is the official currency of Somalia, a country located in the Horn of Africa.
The currency is managed by the Central Bank of Somalia, which is responsible for issuing and managing the nation’s money supply.
The currency code for the Somali Shilling is SOS, and the symbol commonly used is “Sh“.
History of the Somali Shilling
The Somali Shilling was introduced on June 15, 1962, replacing the East African Shilling at par, meaning that 1 Somali Shilling was equal to 1 East African Shilling at the time.
Before the introduction of the Somali Shilling, the East African Shilling was used as the official currency of Somalia, which was a trust territory under Italian administration until it gained independence in 1960.
Denominations and Subdivisions
The Somali Shilling is divided into 100 smaller units called cents, although cent coins are no longer in circulation due to their low value.
Coins are issued in denominations of 1, 5, 10, 50, 100, 500, and 1000 Somali Shillings, while banknotes are available in denominations of 1,000, 2,000, 5,000, and 10,000 Somali Shillings.
The designs on the Somali Shilling coins and banknotes often depict local wildlife, cultural symbols, and important historical figures and events, reflecting the nation’s rich heritage and natural environment.
Exchange Rates and Economy
The exchange rate of the Somali Shilling can fluctuate based on various factors, such as the nation’s economic performance, inflation, and supply and demand for the currency in international markets.
To find the current exchange rate between the Somali Shilling and other currencies, you can consult financial sources or use currency converter tools.
The economy of Somalia is primarily based on agriculture, livestock, and remittances from the Somali diaspora.
However, the country’s prolonged political instability, civil wars, and the lack of a functioning central government for many years have severely impacted its economic development.
Summary
The Somali Shilling is the official currency of Somalia and is managed by the Central Bank of Somalia. It was introduced in 1962, replacing the East African Shilling at par.
The currency is subdivided into 100 cents, with coins and banknotes issued in various denominations.
The Somali economy is primarily based on agriculture, livestock, and remittances, but it faces significant challenges due to political instability and a lack of central governance.