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Annual Report 2017 with Audited Financial Central Bank of Somalia CENTRAL BANK OF SOMALIA Annual report 2017 i CENTRAL BANK OF SOMALIA ANNUAL REPORT Central Bank of Somalia ECONOMIC RESEARCH AND STATISTICS DEPARTMENT 2017 i CENTRAL BANK OF SOMALIA ANNUAL REPORT Annual Report 2017 In the case of quotation, please refer to this publication as follow: - Central bank of Somalia (CBS) Annual report 2017: Mogadishu – Somalia To request a complimentary copy of this report, an electronic copy is available at www.centralbank.gov.so 55 Corso Somalia P. O. Box 11 Mogadishu, Somalia Phone: + (252) 1866131 + (252) 1866151 + (252) 1866152 Fax: +2521241152 Email: [email protected] Website: www.centralbank.gov.so ii CENTRAL BANK OF SOMALIA ANNUAL REPORT iii CENTRAL BANK OF SOMALIA ANNUAL REPORT iv CENTRAL BANK OF SOMALIA ANNUAL REPORT Mr. Bashir Isse Ali - Governor and Chairman Ms. Maryan Abdullahi Yusuf - Deputy Governor Mr. Abdirashid Mohamed Siraaji - Member Dr. Omar Ibrahim Hussein - Member s Board of Directors of s Board Mr. Maya Mohamed Shekhuna - Member CBS’ Mr. Yusuf Mohamed Ali - Member Ms. Hodan Said Isse - Member v CENTRAL BANK OF SOMALIA ANNUAL REPORT LIST OF ACRONYMS CPI Consumer Price Index RDNA Rapid Drought Needs Assessment FAO Food and Agriculture Organization AML/CFT Anti-money Laundering and Combating Financing of Terrorism CBS Central Bank of Somalia FGS Federal Government of Somalia GDP Gross Domestic Product UN United Nations UAE United Arab Emirates US United States of America IMF International Monetary Fund FMS Federal Member States UAE United Arab Emirates AFDB African Development Bank WEO World Economic Outlook TA Technical Assistance DMU Debt Management Unit MDRI Multilateral Debt Relief Initiative HIPC Heavily Indebted poor Countries MTBS Money Transfer Business Service SOS Somali shillings SMP Staff Monitored Program LPG Liquefied Petroleum Gas BOD Board of Directors MOF Ministry of Finance OAG Office of the Accountant General MDAs Ministries Departments and Agencies SFMIS Somali Financial Management Information System TSA Treasury Single Account IDA International Development Association IFIs International Financial Institutions vi CENTRAL BANK OF SOMALIA ANNUAL REPORT CONTENTS List of Acronyms ........................................................................................................................... vi CONTENTS .....................................................................................................................................vii LIST OF TABLE................................................................................................................................ viii LIST OF FIGURE ............................................................................................................................. viii GOVERNOR’S MASSAGE ............................................................................................................. 1 1. WORLD ECONOMY................................................................................................................... 4 1.1 Global Financial Stability ................................................................................................. 6 1.2 Remittance to Developing Countries ........................................................................... 6 2. DOMESTIC ECONOMY ............................................................................................................. 9 2.1 Agriculture ........................................................................................................................ 10 2.2 Fishery ................................................................................................................................ 11 2.3 Domestic production ..................................................................................................... 12 2.4 Remittance ....................................................................................................................... 12 2.5 Exchange rate Development ....................................................................................... 12 2.6 Inflation Outlook .............................................................................................................. 13 3. PUBLIC FINANCE DEVELOPMENT .......................................................................................... 16 3.1 Implementation of Fiscal Policy ................................................................................... 16 3.2. Revenue and Grants ..................................................................................................... 16 3.2.1 Taxes on International Trade: ................................................................................ 16 3.2.2 Income and Corporate Tax: ................................................................................. 17 3.2.3 Revenue Mobilizations: .......................................................................................... 17 3.2.4 Donor Grants: ........................................................................................................... 17 3.3 Expenditure....................................................................................................................... 18 4. External Sector ....................................................................................................................... 20 4.1 Balance of Payments ..................................................................................................... 20 4.1.1 Current Account ..................................................................................................... 20 4.1.2 Merchandise Trade ................................................................................................. 20 4.1.3 Direction of Trade .................................................................................................... 20 4.1.4 Income ...................................................................................................................... 20 4.1.5 Capital and Financial Account ........................................................................... 20 4.2 Public Debts ..................................................................................................................... 22 5. FINANCIAL SECTOR DEVELOPMENT..................................................................................... 24 vii CENTRAL BANK OF SOMALIA ANNUAL REPORT 5.1 STRUCTURE OF BANKING SECTOR ................................................................................. 24 5.2 Stability of the Financial System ................................................................................... 24 5.3 Financial sector policies ................................................................................................. 25 5.4 Money transfer businesses ............................................................................................. 25 5.5 Commercial Banks .......................................................................................................... 25 6. MONETARY POLICY ................................................................................................................ 27 6.1 Currency Reform ............................................................................................................. 27 7. CORPORATE GOVERNANCE ................................................................................................. 30 7.1 Board of Directors ........................................................................................................... 30 7.2 International Monetary Fund Staff-Monitored Program (SMP) .............................. 32 8. Financial Performance ......................................................................................................... 33 REPORTS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 ...... 34 LIST OF TABLES Table 1:- Actual and Projected Output in Selected Countries/Regions (Per Cent Change) ......................................................................................................................................................... 5 Table 2: Remittance flows to lower and middle income courtiers .................................... 7 Table 3: National Income and Prices, 2014-2017................................................................. 10 Table 4: Livestock export .......................................................................................................... 10 Table 5: Monthly Exchange Rate in SOS ............................................................................... 13 Table 6: Overall CPI and Inflation Rates ................................................................................ 14 Table 7: Summary of Revenue and Expenditure 2016-2017 ( Millions of US Dollars)..... 16 Table 8: Balance of Payments 2016-17 (Millions of US Dollars).......................................... 21 Table 9: External Public Debt (2013-2017) In Millions of US Dollars ................................... 22 Table 10: Assets in Banking Sector .......................................................................................... 24 Table 11: BOARD MEMBERS AND BOARD COMMITTEES ..................................................... 30 Table 12: Board Regulation ...................................................................................................... 31 Table 13: Board Directives ........................................................................................................ 31 LIST OF FIGURES Chart 1: FSNAU-FEWS NET
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