Somaliland Shilling Continue Losing Value and will Disappear Soon


Somaliland Shilling Continue Losing Value and will Disappear Soon

Money is a legal tender that is obligated by the government. Legal tender is a type of payment that can lawfully be used to meet financial obligations. Each country in this world has its own money, which is used as a medium of exchange within that country.
Last time I observed the Somaliland shilling was 2005. It was 10 years ago. At that time, the Somaliland shilling was functioned and had its own value. The exchange of $1 was around 5000 Sh. Every sector was worked with Somaliland shillings such as: hotels, transport sectors, government Institution, gas stations, grocery stores, and all other sectors.
Money functions for three purposes, the median of exchange, the measurement value and store of the value. American dollar was used for exchange only, but not used for medium of exchange or for the measurement of value. The Somaliland shilling was used for every sector overwhelmingly during that year.
I went back to Somaliland last month after 10 year; the first thing I noticed was the dysfunctional of the Somaliland shilling. The Somaliland Central Bank is not functioning well. As we known the central Bank is responsible to protect the Somaliland shilling. The central bank has duties such as printing the Somaliland shilling, maintaining the stability of the financial system, conducting the monetary policy, supervising and regulating depositary institutions and providing payment and other financial services to the government. However, the Somaliland Bank failed to perform its duties and defiantly the ineffectiveness of the bank is the responsibility of the current government.
The current government always claims success and creating huge development. One of the successes that they claimed was the expansion of the Somaliland currency to the east such as Togdheer and Sanaag region even though it neglected the Sool region and Buhodleh district. The question is does it make sense to change the Somaliland shilling when it is suffering tremendously?
The American dollar is functioned overpoweringly in Somaliland; it can be used as the media of exchange, the measurement of value and store of value. Somaliland shilling has no value at all. Those who use the Somaliland shilling are the vulnerable people – those who sell tomatoes on the streets, the internal bus commuter and beggars on the streets. The Somaliland shilling is fading and Somaliland shilling does not deserve to desert.
Somaliland has been claimed sovereignty for more than 20 years. One of the first pillars about state is its own currency and Somaliland has been its own currency. The country that does not have its own currency means the sovereignty of that nation is not complete. The national jurisdiction and sovereignty is basic in what they have and what they control. Somaliland’s current government has failed to control its own currency.
The current government not only facilitated the vanished Somaliland currency, but it is encouraged to not use it in domestic market. The previous governments used the economical capital which is why the Somaliland shilling had operated perfectly.
Before it is too late, Somaliland citizen’s desire to focus on how to fix the Somaliland shilling. Each one of us has a responsibility and obligation for our beloved country, therefore, the protection of the Somaliland shilling is inevitable of us.

Osman Awad


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