Somalia bans FOREX Trading

The Central Bank has ordered the closure of bank accounts held by forex trading companies in all commercial banks countrywide.

This comes in a circular letter issued on Tuesday, December 23rd and seen by media, following a meeting of the Board of Directors, on Oct 28th, the Bank instructed commercial banks to close bank accounts belonging to forex traders with immediate effect.

The order which was signed by Deputy Central Bank Governor Maryam Abdullahi Yusuf, also directs commercial banks to submit names of the account holders and all money balances held these accounts.

The order now deals a blow to the booming forex trade in the country. Several forex trading companies have opened in Somalia’s main cities in the last few months attracting Somalis to the forex business.

The common form of forex trading in the country has been through brokerage where individuals pay a certain amount of money to forex companies and receive their profit on a monthly basis.