The Appreciation of the Somali Shilling

[AbdiWahab252]

Its getting out of control. The Somali shilling has appreciated a lot in the past few months. The exchange against the dollar started to nose dive less than two years ago. In 2010, it averaged 33,000 SoS to $1USD then 28,000SoS to $1USD in 2011, and in 2012 it went to a low of 20,000 SoS to $1USD and now in 2013, its 19,000 SoS to $1 USD. There has been no significant drop in the price of basic commodities especially those imported from overseas. Inflation is rising and yet there is no concerted action from the government to address this crisis which has sparked demonstrations among the poor who are protesting the drop in the value of the dollars sent home by relatives overseas. The laborers who work in the construction industry are now begin demanded to be paid in Somali Shillings rather than dollars.

So the government needs to address this most challenging crisis ASAP !

[Titanium]

Was the reer Awdal Governor of the Bank of Somalia inaugurated yet? If so, I hope he's addressing this issue

[Thuganomics]

Dont you mean depreciation

[hawyie_gangsta]

Usually most central governments would increase the money supply in order to combat inflation but that would be difficult when the somali currency doesnt mean sh*t and no investors would want to buy bonds from you. This crisis could have been seen a mile away with the influx of FDIs in somali through the diaspora, turkish investment and stability the currency was bound to appreciate and gain value but without any congruent financial institutions and the main worry being Alshabaab and security. Somalia MUST DEPRESS THE CURRENCY it is in no position to have a strong somali shilling. The government must start to print new money and subsidies communities but how can you expect a government to subsidies when it virtually depends on USAID and other NGO. So for the time being it seems the miiskin people will be hit hard with inflation. P.S dont expect the ministry of finance to implement policies when it cannot collect taxes. Inshallah development isnt reached in months even though we somalis know we can. We need to play the game of the free market and globalisation.

[FarhanYare]

Dont you mean depreciation

no. reread again

[ayub123]

Actually today (26 june 2013) $1 is 1,404.10 somali shillings

[Osob101]

A New Currency is on the way which will be more stable, strong and very hard to forge.

[AbdiJohnson]

Actually today (26 june 2013) $1 is 1,404.10 somali shillings

How did it appreciate so fast? Wasn't it 15,000 to the Greenback just a few months ago?

I am,

Abdi "C'est Impossible" Johnson

[AbdiWahab252]

A New Currency is on the way which will be more stable, strong and very hard to forge.

And if there are POOR controls and poor management, a great way to rob the entire nation.

[UlteriorMotive]

Actually today (26 june 2013) $1 is 1,404.10 somali shillings

Nope. It's 19,000 to the Dollar.

The lowest it's been is 13 or 14 very briefly. These days it tends to hover at the 18-20,000 range.

[ayub123]

Actually today (26 june 2013) $1 is 1,404.10 somali shillings

Nope. It's 19,000 to the Dollar.

The lowest it's been is 13 or 14 very briefly. These days it tends to hover at the 18-20,000 range.

Where are you getting this wrong information from?
Check this link http://www.xe.com/currencyconverter/con ... USD&To=SOS

[UlteriorMotive]

Nah bro. My rates are straight from the streets of Xamar and correct up until the end of June

I doubt XE have any people on the ground who keep tabs on the exchange rate. Most Somali financial information is unofficial. No one currently collects any data on it.

[TheblueNwhite]

Nah bro. My rates are straight from the streets of Xamar and correct up until the end of June

I doubt XE have any people on the ground who keep tabs on the exchange rate. Most Somali financial information is unofficial. No one currently collects any data on it.

You have been to the city that's how you know. It has been 18, 000 for a while now. I dont remember ever being 20k.

[UlteriorMotive]

You have been to the city that's how you know. It has been 18, 000 for a while now. I dont remember ever being 20k.