The Federal Republic of Somalia, or Somalia, is a country located in the East African region. Nowadays, remittances from and to Somalia have become extremely easy and undemanding. In addition, with the advancement of technology and the increase of suitable and reliable platforms, all types of cabling of international funds are feasible by everyone.
In this article, we will look at some issues related to online money transfers in Somalia.
Manner of transfer of funds
Reports reveal that online remittances in Somalia exist mainly between it and the United States, the United Kingdom and India. Then the question is – “How do I send money and receive money from Somalia when individuals are staying abroad?” The answer is simple.
Money transfer is possible through cash, direct bank connections or through debit and credit cards and electronic wallets. In addition, the WorldRemit option is available. Senders can credit the money to the recipient’s local bank account, prepaid card or electronic wallet.
Alternatively, the latter may collect the funds transferred from a specific remittance agent.
Translation fees vary depending on the translation regime, the prevailing exchange rates, the urgency of the translation and the amount. Thus, the fees for sending money to Somalia from the United Kingdom and India would be different.
As all these methods with their related factors are available, it is necessary to check which regime is appropriate for both the creditor and the beneficiary before choosing one.
The size and frequency of translations always remain a question in the world of online translations. Given the additional fees associated with making international money transfers, it seems strange to send a trivial and insignificant amount. This is mainly because the fees would exceed the amount that needs to be transferred.
Therefore, people have to choose a significant amount of money. They can transfer on a quarterly or annual basis instead of a monthly interval.
The main factor to be monitored is the exchange rate between the countries. The exchange rate refers to the difference in value between the currencies of different countries. As the value of the same numerical amount of money differs, this affects the amount sent from one country to another.
Compared to the USD, INR and pound sterling of the US, India and the United Kingdom, respectively, the exchange rate of the Somali currency, the Somali shilling, is relatively lower. The reason lies in the following factors:
- Inflation: Somalia has higher inflation rates than the other three counties. Thus, its currency marked a decline in value.
- Interest rates: This parameter varies from country to country depending on its supply and demand, monetary policy and government loans. With Somalia’s low interest rate, its currency is depreciating.
- Economic performance: The recession and the depreciation of the country’s lucrative performance will inevitably be detrimental to the value of its currency. This is exactly the case with Somalia.
How To Make Money Online In Somalia
As Somalia is at such a disadvantage when it comes to online remittances, it must have appropriate measures in place to allow its citizens to earn the necessary transferable amount. However, with the onset of the pandemic, only the online income regime is open. Some of them include the following:
- YouTube channels
- Affiliate Marketing
- Buying and selling a domain