Somaliland: The fight Against Inflation Results in Huge Dollar Demand.
(MENAFN- Somali Land Sun)
Somalilandsun- After the stop of the dollar circulation in Somaliland markets its demand has exacerbated. The government had issued a decree to all the telecommunication firms in Somaliland to stop them from transfer of less $100 in their mobile money transfer services. This move was meant to fight the run away inflation that have ravaged the economy. A spot check in many businesses confirmed that some crooked businessmen were flouting the government order by refusing to accept Somaliland Shillings sent through the mobile money transfer ie Zaad and e-dahab.
The traders claimed that they were only accepting the dollars and shillings in cash.
On the other hand the demand of the dollar has increased whereas the government wanted it to decrease to promote the circulation of Somaliland shillings.
Our reporter found out that most shopkeepers were selling their goods at exorbitant prices, by adding a few more shillings so that later on they could convert the shillings into dollars and by doing so the common man on street will suffer. Simply the business community had found another way round to harass their customers with hike of prices.
At petrol stations a liter of petrol was selling with Shillings 500 on top of the normal price.
One of the proprietors of electronic goods mostly mobile phones said that they cannot sell the good in Shillings because they have no storage facilities to keep the money. He went further to say the problem is that they bought their goods in dollars and the Somaliland Shillings is not recognized in the world financial markets so the government needs to go back and revisit this new policy.
A woman with a cold drinks shop said 'We usually purchase goods and services in dollars when I take the Somaliland Shillings to money changers they claim what do they have to gain in profit.'
The chairman of Somaliland money changers association Mr.Ahmed Hassan Awliyo has said the new directive has caused a lot of uncertainties in the markets. He urged the inflation committee to go back to the drawing board a come with a lasting solution to this problem.
By: Guleid Abdi Maher
Yusuf M Hasan
Tel: +252-63-4415871 & +252-65-9094004
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