Somaliland Gov Bans the use of Somali Shillings in Burco

[AsadSL]

Somaliland Banned the use of Somali Shillings in the City of Burco

The Central of Bank of Somaliland stopped the use of the Somali shilling in its second largest city of Burco as the self-declared republic embraces to start blanket operation of its own currency by the end June this year.

The Governor of the Central Bank of Somaliland Abdi Dirir Abdi on Tuesday declared that the longstanding Somali shilling will no longer function as a means of currency in the markets of Burco and its surrounding environments.

The Bank official said they have so far collected about 20 billion Somali shilling which is equivalent to 10 billion Somaliland shilling that are meant to be withdrawn from the local markets of the entire Togdheer region.

“Starting from today we will be using the Somaliland currency in all our regions and towns. We will be using our currency to collect revenues and in other monetary payments” said the governor while addressing the local population of Burco

A few weeks ago the self-declared government of Somaliland had officially announced its plans to halt the use of Somali shilling indicating the emergence of a functioning government which is trying to control its own economy.

Authorities in Hargeisa have been engaged in an operation to wipe out the much valueless Somali currency from the province of Togdheer which local economist say is groaning under the weight of hard economic times.

The Central Bank of Somaliland is sending a message to its citizens in the affected region that they should start adapting their own currency said the governor. It is believed that the changing of currency was part of pre-election pledges of the current authority of Ahmed Silanyo who has promised to marshal widespread economic reforms in a region that is yet to be recognized by the international community.

Earlier in April Somaliland’s Central Bank began exchanging 7 billion Somali shillings ($4.37 million) of notes for its own currency as part of a plan to stop using the original Somali currency.

The Somaliland shilling was introduced in October 1994. And by the end of 2008, the breakaway region’s currency was valued at 7,500 per dollar. The Somali shilling is currently valued at 1,601 against the U.S. currency according to Bakara market data.

Somaliland lawmakers are expected to enact a draft banking law in few days time in order to enable commercial lenders to extend credit to borrowers for the first time in the region’s history.

Somaliland is a former British colony which declared independence in 1991, following the ouster of former Somali dictator Mohammed Siad Barre.

Source:Hiiraan.com

[Siciid85]

[Executive]

lol @ ban. Its disastrous to let politics and animosity dictate your monetary policy. How can you ban a currency that is widely used in the region? Not good for trade. I can take Ethiopian Birr to Burco exchange it and start trading but not Somali shilling?

[Siciid85]

What region? the whole of Togdheer currency has been changed that includes all the villages, towns, districts that come under it.

[samatar133]

lol @ ban. Its disastrous to let politics and animosity dictate your monetary policy. How can you ban a currency that is widely used in the region? Not good for trade. I can take Ethiopian Birr to Burco exchange it and start trading but not Somali shilling?

lool, khalad baad fahantay ee waxa la ban_gareeyay waa aqbalida ay hay'adaha dawladu hore u aqbali jireen in cashuurta lagu bixin karo shillin somali (giimbaar). from now on no government institution will accept shilling somali as accebtable mean for tax payment. by the way somaliland money markets are governed by something called demant and supply not hate and animosity as you want depict. burco waxa markii horeba laga isticmaali jiray boqolka shillin somaliga oo kaliya, waxay ahayd magaalada kaliye ee laga isticmaalo boqolka. gobolada gale ee wixii laysku odhan jiray somalia waxa laga isticmaalaa 1000 shilin ee hore iyo 1000 shilin oo cusub oo la yidhaa Dabaqalooc oo uu sida la ii sheegay samaystay cabdilaahi yusub.

[Executive]

What region? the whole of Togdheer currency has been changed that includes all the little villages, towns that come under it.

I am talking about the whole of the somali region, the horn. There is all kind of trade going on in the horn. Banning a currency is very extreme, as oppose to just changing the main currency. Its not good for an trade and the economy as a whole, more recently Nepal/India currency issue is an example, after the ban it was forced to lift it due to its economic impact. Mide kaale for once can't you just stop lying. Kulahaa the whole of Togdheer has been "changed".

[Executive]

lol @ ban. Its disastrous to let politics and animosity dictate your monetary policy. How can you ban a currency that is widely used in the region? Not good for trade. I can take Ethiopian Birr to Burco exchange it and start trading but not Somali shilling?

lool, khalad baad fahantay ee waxa la ban_gareeyay waa aqbalida ay hay'adaha dawladu hore u aqbali jireen in cashuurta lagu bixin karo shillin somali (giimbaar). from now on no government institution will accept shilling somali as accebtable mean for tax payment. by the way somaliland money markets are governed by something called demant and supply not hate and animosity as you want depict. burco waxa markii horeba laga isticmaali jiray boqolka shillin somaliga oo kaliya, waxay ahayd magaalada kaliye ee laga isticmaalo boqolka. gobolada gale ee wixii laysku odhan jiray somalia waxa laga isticmaalaa 1000 shilin ee hore iyo 1000 shilin oo cusub oo la yidhaa Dabaqalooc oo uu sida la ii sheegay samaystay cabdilaahi yusub.

You have obviously not read the article. This has nothing to do with demand or supply, this is government economic reforms. They decide what currency to inject into the market and what currency to "ban".

[samatar133]

lol @ ban. Its disastrous to let politics and animosity dictate your monetary policy. How can you ban a currency that is widely used in the region? Not good for trade. I can take Ethiopian Birr to Burco exchange it and start trading but not Somali shilling?

lool, khalad baad fahantay ee waxa la ban_gareeyay waa aqbalida ay hay'adaha dawladu hore u aqbali jireen in cashuurta lagu bixin karo shillin somali (giimbaar). from now on no government institution will accept shilling somali as accebtable mean for tax payment. by the way somaliland money markets are governed by something called demant and supply not hate and animosity as you want depict. burco waxa markii horeba laga isticmaali jiray boqolka shillin somaliga oo kaliya, waxay ahayd magaalada kaliye ee laga isticmaalo boqolka. gobolada gale ee wixii laysku odhan jiray somalia waxa laga isticmaalaa 1000 shilin ee hore iyo 1000 shilin oo cusub oo la yidhaa Dabaqalooc oo uu sida la ii sheegay samaystay cabdilaahi yusub.

You have obviously not read the article. This has nothing to do with demand or supply, this is government economic reforms. They decide what currency to inject into the market and what currency to "ban".

but that is only reason for this policy. maqaalkana waan akhriyay wax dhib ahna maan arag . what is wrong with a country injecting its own curreny into its own markets and withdrawing foreign currenies out of the market. this is just ordinary monetary policy and its what Kulmiye party promised and what people voted for it. as i arealdy told the pan will affect only on government instititution that were previously accepting somali shilling that are now required to accept only somaliland shiling.
bal waxaad noo sheegtaa waxa khaldan ee aad aragtay?

[gurey25]

The somali currency use is unpatriotic and it amounts to paying taxes to puntland.
Im sure everyone knows that Puntland is responsible for most of the counterfiet currency in all of somalia..

The reason the somaliland shilling was not used before was because of the corrupt practices of the somaliland government, during the Egal and Riyal years.
Egal was attempting to change this when he died but it went on for 8 years since he passed away..

For the traders in burco business was business and paying taxes indirectly to the counterfiet kings in puntland was still cheaper than getting screwed by their own government.

deals have been made behind the scenes , the business community in eastern somaliland has made peace with the somaliland government, they have kissed and made up.
This has been resolved and along with the reforms in berbera port there is no longer an economic argument for it anymore..

[gurey25]

mashallah pretty good work for a government less than a year in power..

Inshallah we recover from the lost decade and will continue to progress...

[CORRUPTION]

The somali currency use is unpatriotic and it amounts to paying taxes to puntland.
Im sure everyone knows that Puntland is responsible for most of the counterfiet currency in all of somalia..

The reason the somaliland shilling was not used before was because of the corrupt practices of the somaliland government, during the Egal and Riyal years.
Egal was attempting to change this when he died but it went on for 8 years since he passed away..

For the traders in burco business was business and paying taxes indirectly to the counterfiet kings in puntland was still cheaper than getting screwed by their own government.

deals have been made behind the scenes , the business community in eastern somaliland has made peace with the somaliland government, they have kissed and made up.
This has been resolved and along with the reforms in berbera port there is no longer an economic argument for it anymore..

Well said gurey, don't forget that the condition this money was in is really terrible. it smells like shit and is beyond damaged. Frequently when you try to pull it out of your pocket the notes just start to tear and when getting to the shop they wont accept it. Executive just doesn't know what she's talking about.

[Keyse_0208]

The old Somali Shilling getting Burnt as its has No value what so ever, well nearly

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