Somalia is a country located in the Federal Republic of Somalia, East Africa. Nowadays, money transfers to and from Somalia have become extremely easy and unnecessary. In addition, with the advancement of technology and the growth of suitable and reliable platforms, all types of international fundraising are possible by everyone.
In this article, let’s cover some questions related to online money transfer in Somalia.
Mode of funds transfer
Reports have revealed that online money transfers in Somalia exist mainly between her and the United States, the United Kingdom and India. Then, the question is – “How can a person send and receive money from Somalia when he is abroad?” The answer is simple.
Money transfers are possible through cash, direct bank wiring or debit and credit cards and e-wallets. Also, the option of World Remit is available. Senders can deposit money in the recipient’s local bank account, prepaid card or e-wallet.
Alternatively, the latter could raise funds transferred from a designated money transfer agent.
Transfer fees vary according to the transfer mode, the conventional exchange rate, the urgency of the transfer and the amount. Thus, remittance charges from the UK and India to Somalia will be different.
Since all of these methods are available for their respective reasons, one must consider which mode is suitable for both the creditor and the beneficiary before choosing one.
The amount of sending
The amount and frequency of transfers has always been a question in the world of online transfers. Considering the extra charges involved when transferring international money, it seems strange to send a trivial and insignificant amount. This is primarily because the fee will exceed the amount required for the transfer.
So, individuals must choose for a sufficient amount of money. They can transfer on a quarterly or annual basis instead of monthly intervals.
The first factor to keep in mind is the exchange rate between countries An exchange rate refers to the price difference between the currencies of different countries. Since the value of the same numerical amount of money is different, it affects the amount sent from one country to another.
The Somali shilling exchange rate, the Somali shilling, is comparatively lower than the USD, INR, and USA, India, and UK pound sterling, respectively. The cause is among the following:
- Inflation: Somalia has a higher inflation rate than the other three counties. Thus, the value of its currency decreases.
- Interest rate: This parameter varies from country to country depending on its demand and supply, monetary policy and government debt. With Somalia’s low interest rates, its currency has depreciated.
- Economic performance: The recession and devaluation of the country’s profitable performance will inevitably be detrimental to the value of its currency. The same is true of Somalia.
How To Make Money Online In Somalia
Since Somalia is in such a predicament when it comes to online money transfers, there should be appropriate measures in place to allow its citizens to earn the required transferable amount. However, with the onset of the epidemic, only online sources of income remain open. Some of them include the following:
- YouTube channel
- Affiliate Marketing
- Buying and selling domains