The Bank of Somaliland (Baanka Somaliland) was established in 1994. It acts as both a central bank and a commercial bank for Somaliland, a de facto independent republic which is recognized as a part of Somalia. The monetary authority was provided for in the constitution of Somaliland. It has a head office branch in Hargeisa, seven other branches, and four foreign exchange offices in the airports at Hargeisa, Berbera, Borama, and Gabiley.

The bank aims, in line with Article 3 of the Constitutive Law of Somaliland Bank to:

Somaliland (Somali: Soomaaliland, Arabic: صوماللاند‎ Ṣūmālilānd or أرض الصومال Arḍ aṣ-Ṣūmāl) is an unrecognised self-declared de facto sovereign state that is internationally recognised as an autonomous region of Somalia. The government of Somaliland regards itself as the successor state to the British Somaliland protectorate, which was independent on June 26, 1960 as the State of Somaliland, before uniting with the Trust Territory of Somalia (the former Italian Somaliland) on July 1, 1960 to form the Somali Republic.

Somaliland is bordered by Ethiopia in the south and west, Djibouti in the northwest, the Gulf of Aden in the north, and the autonomous Puntland region of Somalia to the east.

In 1988, the Siad Barre regime committed massacres against the people of Somaliland, which were among the events that led to the Somali Civil War. The war left the economic and military infrastructure severely damaged. After the collapse of the central government in 1991, the local government, led by the Somali National Movement (SNM), declared independence from the rest of Somalia on May 18 of the same year.