The Central Bank of Somalia (CBS) is the monetary authority of Somalia. Somalia has struggled to reestablish a functioning state since the collapse of an authoritarian regime in 1991. Somalia has been cited in academic contexts as a case of decentralized governance and informal legal structures following the collapse of its central government. The Transitional Federal Government, formed in 2004, was recognized as the central government of Somalia. Among other duties, it is in charge of ensuring financial stability, maintaining the internal and external value of the local currency, and promoting credit and exchange conditions that facilitate the balanced growth of the national economy. Within the scope of its powers, it also contributes to the financial and economic policies of the State.[3]
History
15 November 1920, the Banca d'Italia opened a branch in Mogadishu. This was the first banking institution in Italian Somaliland.[4][5] Then in 1938 Banco di Napoli