The Federal Republic of Somalia, or Somalia, is a country lying in a region of Eastern Africa. Nowadays, money transfer to and fro Somalia has become exceedingly effortless and undemanding. Additionally, with the advancement of technology and the increase of suitable and reliable platforms, all kinds of international fund wiring are feasible by every individual.
In this article, let us cover some questions related to online money transfers in Somalia.
Mode of Fund Transfer
Reports have discovered that online money transfers in Somalia predominately exist between itself and the United States of America, the United Kingdom, and India. Then, the question is- “How to send money and receive money from Somalia when individuals reside abroad?” The answer is simple.
Money transfer is possible through cash, direct bank wirings, or through debit and credit cards and e-wallets. Also, the option of WorldRemit is available. The senders can have the money credited to the recipient’s local bank account, prepaid card, or e-wallet.
Alternatively, the latter can collect the transferred funds from a designated money transfer agent.
The transfer fees vary according to the transfer mode, prevailing exchange rates, the urgency of transfer, and the amount. Thus, the charges to send the money to Somalia from the UK and India would be different.
Since all these methods with their associated factors are available, one must check which mode suits both the creditor and the beneficiary before choosing one.
Amount to Be Sent
The amount and frequency of transfers always remain a question in the world of online transfers. Considering the additional charges involved while making international money transfers, it seems peculiar to send a trivial and insignificant sum. It is primarily because the fees would outweigh the amount that needs transference.
Hence, individuals must opt for a substantial amount of money. They can transfer on a quarterly or yearly basis instead of a monthly interval.
The foremost factor that one must keep an eye out for is the exchange rate between the countries. An exchange rate refers to the difference in value between the currencies of various countries. Since the value of the same numerical quantity of money differs, it affects the amount sent from one country to another.
Compared to USD, INR, and Pound Sterling of the USA, India, and the UK, respectively, the exchange rate of the currency of Somali, the Somali Shilling, is comparatively less. The reason lies in the following factors:
- Inflation: Somalia has higher inflation rates as compared to the other three counties. Thus, its currency sees a fall in value.
- Interest Rates: This parameter varies from country to country depending on its demand and supply, monetary policy, and government borrowing. With Somalia’s low interest rate, its currency experiences a decrease in its value.
- Economic Performance: Recession and depreciation in the country’s lucrative performance will inevitably be detrimental to the value associated with its currency. It is precisely the case with Somalia.
How to Make Money Online in Somalia?
Since Somalia is at such a disadvantage during online money transfers, it should have suitable measures to allow its citizens to earn the required transferrable amount. However, with the onset of the pandemic, only the online mode of income is open. Some of them include the following:
- YouTube Channels
- Affiliate Marketing
- Domain Purchase and Sale