HARGEISA–The current government is urging local traders to sell commodities on the rate of exchange of Somaliland shillings vs the dollar. This was disclosed by the government of the state’s central bank, Mr. Ali Ibrahim Jama during briefing the house of elders standing committee.
The central bank governor has told the parliament committee that the bank authority is stepping up its efforts to curb the food inflation in Somaliland. He told that the bank staffers will collect commodity price across the country and will try to enforce a regulation that will unify the food price. Mr. Ali has announced that the central bank authority in consultations with the ministry of religious affair will conduct awareness raising project aimed at urging local traders to unify foodstuff price across the country. He asserted that restaurants have not complied with the new exchange rate where 1 dollar is exchanged to 8,400 Shillings. The dollar exchange rate vs Somaliland shillings have hit record low for the past couple of months due to stringent measures aimed at curbing the inflation and deflation that hit the state. Mr. Ali has promised to exert all efforts to bring inflation within the government’s target range within the coming months. Economists have argued that government has the obligation to stabilize the hard currency exchange rate for economic stability in the country. They call on the intervention of the government to stabilize the hard currency exchange rate. The country faced years of food inflation and food price hike which has become beyond the capability of impoverished families living in Somaliland to make ends meet. A couple of weeks ago, the ministry of trade issued stern warning against local traders that are still stick to previous rate of dollar vs shilling exchange.