Only for experts Somaliland macro economical situation
Posted: Fri Dec 25, 2009 6:11 am
Let's take for an example the most important importer of commodities to Somaliland.
Indha Deero Company.
When they import sugar , food oil you name it into Berbera and distribute the products, they can only sell it in SL Shillings.
A currency there is virtually no foreign demand and only covered by three gobols in Somaliland.
Awdal, W/Galbeed and Saaxil.
If my theory is right Indha Dheero has to realise his profit in SL shillings, and on top of that he cannot pay his businesspartners overseas with shilling.
So how in the world can he continue trading and making money unless he is allowed to accept dollar inside Berbera.
If not I think a large part of his fortune is nothing but a bubble which may burst anytime.
Imagine UDUB decides to print out more shillings, who will Indha Dheero sell his shillings to?
Indha Deero Company.
When they import sugar , food oil you name it into Berbera and distribute the products, they can only sell it in SL Shillings.
A currency there is virtually no foreign demand and only covered by three gobols in Somaliland.
Awdal, W/Galbeed and Saaxil.
If my theory is right Indha Dheero has to realise his profit in SL shillings, and on top of that he cannot pay his businesspartners overseas with shilling.
So how in the world can he continue trading and making money unless he is allowed to accept dollar inside Berbera.
If not I think a large part of his fortune is nothing but a bubble which may burst anytime.
Imagine UDUB decides to print out more shillings, who will Indha Dheero sell his shillings to?