| HARGEISA, April 23
HARGEISA, April 23 Somaliland has passed a law
that formally establishes a central bank, and is now poised to
pass another to set up commercial banks in a bid to attract
foreign lenders to start operating in the self-declared country
Somaliland, a breakaway state in the northeast of Somalia,
remains unrecognised internationally.
It has no formal banking sector and its people rely heavily
on remittances from diaspora communities in Europe, North
America and the United Arab Emirates, as there are no ATMs or
"The President has signed the Central Banking Act into law,"
Abdi Dirir, governor of Somaliland's Central Bank, told Reuters
"We are expecting the Commercial Banking Act to be passed in
the next three to four months," Dirir said.
Yemeni state-owned bank CAC, Djibouti-based Salaam African
Bank, and Banque de Depot de Credit Djibouti, a subsidiary of
Switzerland-headquartered Swiss Financial Investments, have all
approached Dirir about commencing operations in Somaliland.
"Once the commercial banking laws are in place, we hope
investors will be attracted by our free market," Dirir said.
(Editing by James Macharia, Ron Askew)