Money in Somaliland: Shillings, Dollars, ZAAD and ATMs

Few places handle money quite like Somaliland. It has its own currency, barely known outside its borders; US dollars change hands alongside it; and most people now pay for almost everything with their phones. For a visitor, Somaliland currency can look confusing at first. It is simple once you know the system.

Somaliland currency: the short answer

Bring US dollars in cash. Use them for hotels and larger payments, and change a little into Somaliland shillings for small purchases. If you are staying more than a few days, get a local SIM and a ZAAD mobile-money account: it is how Somalilanders pay for nearly everything. In Hargeisa, the UK Foreign Office says you can withdraw US dollars from ATMs using international cards.

Somaliland currency: the shilling

Somaliland introduced its own currency, the Somaliland shilling, in October 1994. It is issued by the Bank of Somaliland. Notes in circulation are 500, 1,000 and 5,000 shillings, plus some 100s, and there are no coins. The Somali shilling used in Mogadishu stopped being legal tender in Somaliland in 1995, so don’t bring it. The US State Department also notes that the Somaliland shilling is the currency used in the region.

The exchange rate. In August 2026, the authorities set a new official rate of 11,000 shillings per dollar (buying) and 11,100 (selling). In other words, a single dollar buys a thick handful of notes.

Dollars: the second Somaliland currency

Meanwhile, the US dollar is used widely alongside the shilling, especially for hotels, flights, car hire and larger purchases. Bring clean, recent notes in a mix of denominations: on our own visit, older or worn dollar bills were turned down. Also, if you carry US$10,000 or more in cash, you must declare it on arrival.

The money changers of Hargeisa

Hargeisa’s money changers, who trade Somaliland currency for dollars, work from stalls along the street, and the money market is one of the city’s most memorable sights. The Wall Street Journal described changers sitting behind “3-foot-tall towers of cash”, with assistants wheeling sacks of shillings to customers’ cars. The scene is changing: in 2026 the authorities began licensing money changers, at US$700 for a licence plus an annual tax, and unlicensed changers can no longer exchange through mobile money. If you change cash, use an established, licensed changer, or ask your hotel to point you to one. The money market is also a stop on our 48-hour Hargeisa itinerary.

“Bring dollars, get a SIM, and you can pay for almost anything with a short code.”

ZAAD: paying by phone

The real story of money in Somaliland is mobile, whichever Somaliland currency you use. ZAAD, run by the telecoms company Telesom, launched in June 2009 and is licensed by the central bank. The GSMA, the global mobile industry association, reported that 78% of adults in Somaliland use mobile money. In practice, street vendors, taxi drivers and shops take payment by phone. A second service, eDahab, is run by Somtel.

ZAAD works in both currencies, shillings and dollars, each with its own codes. You don’t need a smartphone or internet: payments are made by dialling short codes, although Telesom also has an app called WAAFI.

How to get a SIM and ZAAD in Hargeisa, step by step

1. Go to a Telesom sales office with your passport. Telesom lists dozens of branches across Hargeisa, including ZAAD HQ downtown, opposite the City Center Hotel, open until late evening, plus branches in Berbera and Borama. We bought our own SIM at a neighbourhood branch without any trouble. We could not find a branch at the airport.
2. Buy a SIM and register for ZAAD. Telesom says a passport is accepted ID for registration, and the remittance service WorldRemit notes that registration is free.
3. Load money. Hand cash to a ZAAD agent or sales outlet, and they credit your account.
4. Pay, send and withdraw using the codes below.

What you want to do	In US dollars	In shillings
Pay a shop (merchant)	*883*merchant number*amount#	*223*merchant number*amount#
Send to a person	*880*phone number*amount#	*220*phone number*amount#
Withdraw cash at an agent	*884*agent number*amount#	*224*agent number*amount#
Buy airtime	*881*number*amount#	*221*number*amount#
Buy a data bundle	*885#	*225#

Codes: Telesom ZAAD. Telesom customer care: 151.

A ZAAD wallet can hold up to US$5,000, and friends or family abroad can send money straight to a ZAAD account through remittance services. If you plan to use your home SIM instead, check with your own operator whether it works in Somaliland before you rely on it.

ATMs and cards

In Hargeisa, ATMs dispense US dollars to international credit and debit cards; outside the capital, don’t count on finding one. On our visit, our hotel accepted a credit card, but shops and restaurants did not: day-to-day payments are cash or ZAAD. So carry enough dollars for your whole trip as a backup.

For the rest of your planning, see How to Get to Somaliland, Is Somaliland Safe? and our Hargeisa Travel Guide. Thinking of doing business here? Start with Doing Business in Somaliland.

Sources

1. ZAAD Services, Telesom.
2. Branches, Telesom.
3. Somaliland shilling, Wikipedia.
4. Bank of Somaliland, Wikipedia.
5. Somaliland closes black markets with outcry from informal local money changers, Radio Ergo, 25 August 2026.
6. Somaliland: pushing the mobile money CVA frontier, GSMA, 2019 (updated 2024).
7. Somalia travel advice (safety and security; entry requirements), UK Foreign, Commonwealth & Development Office, updated 19 October 2026.
8. Somalia Travel Advisory, US Department of State, 2026.
9. Send money to Telesom ZAAD accounts in Somaliland, WorldRemit.
10. eDahab, Somtel.
11. An isolated country runs on mobile money (excerpt), The Wall Street Journal via The E-Sylum, July 2018.

Last checked 24 October 2026. Rates and codes change; confirm with Telesom (151) before you rely on them. Found an error or something out of date? Tell us.