The Federal Republic of Somalia, or Somalia, is a country located in the East African region. Today, the transfer of money to and from Somalia has become extremely easy and undemanding. In addition, with the advancement of technology and the increase of convenient and reliable platforms, all kinds of networking of international funds are feasible for each individual.
In this article, we will cover some issues related to online money transfer in Somalia.
Method of transferring funds
Reports revealed that online money transfers in Somalia mainly exist between it and the United States, the United Kingdom and India. Then the question arises – “How to send money and receive money from Somalia when individuals are staying abroad?” The answer is simple.
Money transfer is possible via cash, direct bank wire or via debit and credit cards and e-wallets. The WorldRemit option is also available. Senders can receive money to the recipient’s local bank account, prepaid card or e-wallet.
Alternatively, the latter may collect the transferred funds from a particular money transfer agent.
Transfer fees vary depending on the method of transfer, the prevailing exchange rates, the urgency of the transfer and the amount. Therefore, the fees for sending money to Somalia from the United Kingdom and India would be different.
Since all of these methods with associated factors are available, it must be checked which method suits both the lender and the beneficiary before choosing.
Amount to send
The amount and frequency of transfers always remain an issue in the world of online transfers. Given the additional costs that arise when making international money transfers, it seems unusual to send a trivial and insignificant amount. This is primarily because the fees would be higher than the amount needed for the transfer.
Therefore, individuals must opt for a significant amount of money. They can be transmitted on a quarterly or annual basis instead of a monthly interval.
The most important factor to pay attention to is the exchange rate between countries. The exchange rate refers to the difference in value between the currencies of different countries. Since the value of the same numerical amount of money differs, it affects the amount sent from one country to another.
Compared to the USD, INR and the pound sterling in the US, India and the UK, respectively, the exchange rate of Somalia, the Somali shilling, is relatively lower. The reason lies in the following factors:
- Inflation: Somalia has higher inflation rates than the other three countries. Thus, its currency is experiencing a decline in value.
- Interest: This parameter varies from country to country depending on its supply and demand, monetary policy and government borrowing. With Somalia’s low interest rate, its currency is experiencing a decline in value.
- Economic performance: A recession and depreciation of a country’s lucrative performance will inevitably be detrimental to the value associated with its currency. This is exactly the case with Somalia.
How To Make Money Online In Somalia
Given that Somalia is at such a disadvantage when it comes to online money transfers, it should have appropriate measures in place to enable its citizens to earn the required transferable amount. However, with the onset of the pandemic, only the online way of making money is open. Some of them include the following:
- YouTube channels
- Affiliate Marketing
- Buying and selling domains