Somalia's Currency Crisis Pushes Traders and Poor into Poverty as Shillings Become Worthless

Somalia is facing a severe currency crisis after traders nationwide boycotted worn-out Somali shilling notes, rendering them worthless and wiping out local savings. The boycott, which spread rapidly from Mogadishu’s Bakara market to businesses across the country, reflects decades of economic shift toward US dollars and mobile payments since the central bank collapsed in 1991. Currency exchangers like Muse Omar Jama report being unable to swap shillings for dollars, leaving their safes full of unwanted cash. The crisis has disproportionately impacted poor households, causing sharp price increases for essentials such as food, medicine, and transport. With farmers now demanding mobile payments and drought devastating crops, many citizens can no longer afford basic groceries. The World Food Programme reports that 6.5 million people face severe hunger, while 2 million children suffer acute malnutrition. Although the federal government has declared the refusal of shillings a criminal offense, enforcement remains doubtful among traders. Experts warn that millions more families will be pushed into poverty as the local currency fails, exacerbating an already dire humanitarian situation in the Horn of Africa nation.