The Struggle of the Somali Shilling: Understanding the Volatile Currency of Somalia

Som is the official currency of Somalia. It is represented by the symbol "SOS" and is divided into 100 senti. The Central Bank of Somalia is responsible for managing the country's monetary policy and overseeing the issuance of the som.

The som has experienced significant fluctuations in value over the years due to political instability, economic turmoil, and hyperinflation. In 2010, the som underwent a redenomination, replacing the old currency with new notes and introducing a new series of coins. However, the currency remains volatile and is not widely traded on foreign exchange markets.

The use of the som is limited in Somalia due to the lack of a functioning central government and the prevalence of informal economic activities. Many transactions are conducted using mobile money and other alternative forms of currency, rather than cash. Despite these challenges, the som remains an important symbol of national identity and a source of pride for the people of Somalia.