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Wednesday, March 13, 2013
Somali President Hassan Sheikh Mohamoud has expressed concern over the rise of the Somali currency against the dollar.
The Somali shilling has been appreciating against major foreign
currencies, particularly the US dollar. On Saturday, the Somali shilling
hit the highest rate of 13,000 against the dollar, from 16,000 just a
week ago. The appreciation is having knock-on effects on the already
weak economy of the Horn of Africa nation. The president said the Somali
government was doing all it could to minimise the effects of the strong
shilling in a largely dollar-based economy.
“The Somali government is working to do something about the matter.
The central bank, the Ministry of Finance and all government
institutions are busy working to find quick solutions,” said the
president.
At Bakara, the largest foreign exchange market in the capital city of
Mogadishu, traders say the weak dollar hits families who were paid with
dollars very hard.
In Somalia, the dollar is used in most transactions except for retail
of staple commodities such as food and groceries. The dollar is used by
most local Somali companies and schools to pay monthly salaries. The
Somali government called for international help for people who have been
affected by the abrupt currency changes in the country.