People angry with Somali government for not regulating Forex

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Somali Central Bank instructed all private banks to close Foreign Exchange company accounts because non of them had a licence. Photo/Google

Mogadishu (UM) – Yesterday the Somali Central Bank instructed all private banks to close Foreign Exchange company accounts because non of them had a licence. The news came after Central Bank insiders reported complaints from commercial banks and investors about financial suspicions.

Forex Trading in Somalia became popular in the last 6 months with Forex companies promising good returns on investment. But many interviewed by UM admit that they did not know much about Forex Business.

“My family have invested over $4000 in Forex and now I am worried. I hope I can get my money back,” said Nura Mohamed, a business woman.

“I invested just over $2000 and I was promised a fixed return every month” said Abdi Bariise, a university teacher.

While ordering the closure of Forex accounts in private banks in Somalia, there was no discussion of compensation in case investors lost their money.

“Forex in Somalia is not regulated and if people lose their money they will suffer because they have no insurance said a Central Bank employee who spoke on the condition of anonymity. “Somali people have to be careful where they invest their money and who they trust.”

Many Forex companies approached for comment by UM declined but members of the Forex community have said that they will challenge the Central Bank decision.

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