Somaliland Shillings Depreciates
Monday December 12, 2016 - 12:34:02 in Business
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Somaliland currency is losing its value, according to money exchanger in Hargeisa. "The Shillings have been depreciating. It causes loss to our business”, Mohamed Ali, money exchanger, says. The US Dollar is exchanged 8 000 Somaliland Shillings. It used to be 6 500 Shillings. The prices of goods soured up, specifically affecting families who receive salary in Shillings. The livestock is also sold out in Shillings as well.
The rural community is already touched by severe drought. The price of foodstuff and other basic commodities increased. Most of the goods in Somaliland are sold in US currency. "The people with Shillings should pay more as the goods are priced in US Dollars,” says economist Adam Ahmed Adam. "Paying all transections into foreign currency and purchasing or selling goods, services and property into foreign currency are part of the root causes of the defaulted Shillings,” says Adam. He argues that "printing unlimited amount of Somaliland Shillings contributes in the problem”. Some economist believe that business people intentionally injected hard currency in the market. The government is yet to comment.