Money transfer to Somalia is a convenient service because the country doesn't accept cards as a means of payment. Sending a pre-paid card to someone in the country is an exercise in futility because the recipient wouldn't be able to use the money that was on the card. Sending traveller's cheques to a beneficiary in the country is also futile because it's difficult to exchange a traveller's cheque for the national currency.
Best ways to make a money transfer
The best ways to make a money transfer is online because you can enjoy fantastic rates. Also, the process is fast, safe, and free to use. All you need to do is check the rate of exchange to determine how much your recipient will receive.
Types of options to send money
One option to send money to Somalia is through Currencies Direct. The platform is regulated, and the rate of exchange is 0.7%, which means the recipient will receive 99.3% of the funds. You can also use Aston Currency Management, Currency Fair, Currency UK, or The Post Office. All of these platforms charge 2%, meaning that the recipient will receive 98% of the funds.
Restrictions on receiving money
Some money transfer services are being shut down due to the US government's anti-terrorism crackdown.
Restrictions on sending money
Since Somalia doesn't have a formal banking system, it's not viable to transfer large sums of money from foreign countries. Also, there's a crackdown on money laundering due to the threat of such funds sponsoring terrorism.
Process to send money
The process involves filling up an online form with your full name, email, phone number, and the amount you wish to transfer. You will then specify which currency you want to transfer and the currency your recipient will receive. You will then get an instant quote online.
Brief economic trend
Due to the civil war that started in the early 90s, Somalia is a failed state. Also, the al-Shabaab terror group has impoverished many people by restricting trade and development. Lack of security means that investors have fled the country, further impoverishing the population.
The Saalam Somali Bank
Somalia does not accept cards for payment?
You might have been wondering about sending a pre paid credit card rather than a money transfer to Somalia. The main reason that you should not do this is that credit cards are not accepted as payment in Somalia. If you were to send one your recipient would not be able to use the money that was on the credit card so it would be a wasted effort.
Foreign exchange in Somalia is hard?
Some people will send travellers cheques to their recipient who lives in Somalia. Once again this is not advised as foreign exchange in Somalia is hard. Your recipient could find that they are unable to exchange the travellers cheques for Somali currency which is the Somali Shilling (SOS), so you should transfer money to Somalia instead. Do this and you will know that your recipient will have their money when they need it.
You will get a great rate online to Somalia?
By exchanging money and sending it online you could benefit from a great rate of exchange. You can check the currency rate Somalia money is being traded at when you arrange your transfer. Using such a service is 100% free and you are able to take a look at the exchange rate whenever you wish to. With all of these facts in mind it is quite simple to see why arranging an online transfer is by far the most preferential method of getting funds to someone that you know who lives in Somalia.