19 May 2007 04:19 SOMALIA WATCH |
| SW News | |
Saturday,
10 February, 2001, 00:20 GMT
The glut of banknotes has caused prices to soar
By Julian Bedford
The interim government in Somalia is being criticised for failing to prevent the importation of huge amounts of forged currency into the country, which has caused economic chaos. About $3m-worth of forged Somali shillings arrived in the capital, Mogadishu, on Wednesday, under an armed escort paid for by local businessmen. Since then, the Somali economy has been in freefall. When the notes began to circulate, the central Bakara market was closed following protests from the small businessmen who conduct most of the trading. MPs, too, have criticised the government for allowing businessmen to import the currency which has reportedly been printed in the Far East. Government accused This is not the first time that forged notes have been brought into the country. The government is reported to receive a cut of the proceeds from such deals and it relies on this percentage to pay civil servants, and rent for its offices. But though the money may keep the government afloat, it has ruined the fragile economy that operates in Mogadishu. Inflation is again rampant and the price of everyday goods has soared, leading to demands that the government puts an end to this practice for once and for all. It has not been an easy start to the year for the interim government in Somalia. Under pressure from regional leaders for its attempts to assert its authority throughout the country, the government now faces criticism from within its own heartland. ____________________________________________________________________________________
Mogadishu
protesters accuse government over forged currency
BBC Monitoring Service - United Kingdom; Feb 9, 2001 Text of report by Somali HornAfrik Online text web site on 8 February Somalia: Mogadishu protesters accuse government over forged currency Text of report by Somali HornAfrik Online text web site on 8 February Business in Bakaaraha market [Mogadishu main market] was halted today in protest of the large scale counterfeited Somali shilling flooding Mogadishu markets these days. Two cargo planes carrying new Somali banknotes landed yesterday at Balidogle airport [90 km west of Mogadishu], and at least two money-printing machines are reportedly operating in Mogadishu. Thousands of business people and local residents took to the streets chanting slogans against the forged Somali notes. The sharp rise of the US dollar against the Somali shilling caused the prices of local commodities to rise beyond the reach of many of the cityĄs residents. This is particularly worrisome for the disadvantaged who had meager resources to meet their daily rations. The TNGĄs [transitional national government] earlier statements to stop these illegal shipments seem to be falling on deaf ears as this large shipments came through Balidogle, an airport where the interim government claims its responsibility. The demonstrators strongly accused the government of helplessly watching what they called vampires living on the blood of the public. Most of the commercial places in the city were closed due to the inflation. Source: HornAfrik Online web site, Mogadishu, in Somali 8 Feb 01 ____________________________________________________________________________________ Forged
currency forces Mogadishu business centres to close The Somali shilling has depreciated against the dollar resulting in commodity prices to skyrocket after new banknotes arrived in the country. The large quantities of new banknotes, reported to be 300bn Somali shillings, have been shipped in by a section of some Somali business community. The soaring commodity prices have forced most Mogadishu business centres to close down. A 50 kilogram sack of sugar which sold at 220,000 shillings a few days ago now sells at 250,000. Similarly, a 50 kilogram sack of rice now sells at 200,000 shillings from 170,000. Our reporter said that traders at the main Bakaaraha market today staged a demonstration to protest against the influx of newly-printed banknotes which are causing price hikes. Source: Radio Mogadishu, Voice of the People of the Somali Republic, in Somali 1700 gmt 8 Feb 01 ____________________________________________________________________________________ RELATED LINK: [SW Column] (Mohamed Dalmar) Monetary Experience of Somalia http://www.somaliawatch.org/archiveoct00/001121201.htm [ News] |
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