Somalia says it needs abritrary sum of $60M to start printing money again

[Inactive]

What happened to the money printing machine they had in Sudan that was there for safe keeping? It was bought during HSM term.

The $60M is for their pocket.

 

[Knowthyself]

what is the point? don't most people use US dollars?

 

[Inactive]

what is the point? don't most people use US dollars?

Yes. Most people send money through their phones.

Wide usage of the dollar brings in foreign investment and increases economic growth.

That being said, more Somali notes need to be printed out. I believe almost all that are in circulation today are from pre 91 and have been destroyed due to wear and tear.

US dollars should only be used for large purchases like airline tickets and purchasing homes.

 

[Knowthyself]

Yes. Most people send money through their phones.

Wide usage of the dollar brings in foreign investment and increases economic growth.

That being said, more Somali notes need to be printed out. I believe almost all that are in circulation today are from pre 91 and have been destroyed due to wear and tear.

US dollars should only be used for large purchases like airline tickets and purchasing homes.

i down get the point of carrying buckets of cash worth 20$..like how do you fix something like that? electronic transfers are the best method. safer and easier

 

[Adheer Warsame]

Wouldn't that inflate the currency even more?

beesha economics help me out, I'm confused

 

[Steamdevolopment]

Those dirty thugs are having an "emergency meeting to emgenecyly steal more money from the state

 

[Prince Abubu]

i down get the point of carrying buckets of cash worth 20$..like how do you fix something like that? electronic transfers are the best method. safer and easier

It's a complicated monetary issue. But the gist of it is, the use of the dollar is crippling the Somali economy further. The Somali shilling already collapsed as a result of the fall of the Barre regime and even prior to that due to mismanagement of the economy by the Kacaan regime. This was greatly excacerbating by the use of foreign currencies like the dollar as people didn't want use the greatly devalued shilling. This did more damage than even the civil war. The less you use a currency, the more it falls in value.

Because there is no regulation on the use of foreign currency in Somalia, the Somali shilling is greatly depreciated as a result. Billions of dollars worth of value leaves the country every year as a result of this. One of the first things a stable Somali government should do is regulated and strictly control any foreign currency in the country. The Somali shilling should be the only tender used by ordinary people, whether it is to purchase a bag of rice or a house.

TL;DR - It is of utmost importance that the Somalis stop using the dollar and go back to the shilling as we are bleeding billions of dollars every year due to a lack of regulation and a proper Central Bank.

 

[Steamdevolopment]

It's a complicated monetary issue. But the gist of it is, the use of the dollar is crippling the Somali economy further. The Somali shilling already collapsed as a result of the fall of the Barre regime and even prior to that due to mismanagement of the economy by the Kacaan regime. This was greatly excacerbating by the use of foreign currencies like the dollar as people didn't want use the greatly devalued shilling. This did more damage than even the civil war. The less you use a currency, the more it falls in value.

Because there is no regulation on the use of foreign currency in Somalia, the Somali shilling is greatly depreciated as a result. Billions of dollars worth of value leaves the country every year as a result of this. One of the first things a stable Somali government should do is regulated and strictly control any foreign currency in the country. The Somali shilling should be the only tender used by ordinary people, whether it is to purchase a bag of rice or a house.

TL;DR - It is of utmost importance that the Somalis stop using the dollar and go back to the shilling as we are bleeding billions of dollars every year due to a lack of regulation and a proper Central Bank.

You need to expan on that? How are we bleeding and to whom?

 

[Prince Abubu]

You need to expan on that? How are we bleeding and to whom?

To put it simply, the less you use a currency, the more it depreciates in value. If it is not being used and circulated, it begins to fall in value which makes goods more expensive for the average Somali, who is already dirt poor.

A devalued currency would be good only if we had some sort of manufacturing or industrial sector, because then it would make our goods much cheaper and more competitive (China has been accused of currency manipulation to get a better edge over it's manufacturing competitors like US, Japan, Korea etc).

However, when you're a poor nation without an industrial sector, it can be very bad as simple goods begin to become super expensive as your currency becomes weaker - it's called inflation.

As the shilling is less used than the dollar, and as it is not being circulated enough due to e-currency like ZAAD, e-Dahab and e-pesa etc. the Somali shilling is losing value and this means we lose billions of dollars every year simply as a result of this process.

Even technologically advanced countries like Japan and South Korea still mostly use cash in hand for services and goods. And up until to late 80s, it was a crime against the state to use foreign currency without strict government approval in South Korea.

 

[Steamdevolopment]

To put it simply, the less you use a currency, the more it depreciates in value. If it is not being used and circulated, it begins to fall in value which makes goods more expensive for the average Somali, who is already dirt poor.

A devalued currency would be good only if we had some sort of manufacturing or industrial sector, because then it would make our goods much cheaper and more competitive (China has been accused of currency manipulation to get a better edge over it's manufacturing competitors like US, Japan, Korea etc).

However, when you're a poor nation without an industrial sector, it can be very bad as simple goods begin to become super expensive as your currency becomes weaker - it's called inflation.

As the shilling is less used than the dollar, and as it is not being circulated enough due to e-currency like ZAAD, e-Dahab and e-pesa etc. the Somali shilling is losing value and this means we lose billions of dollars every year simply as a result of this process.

Even technologically advanced countries like Japan and South Korea still mostly use cash in hand for services and goods. And up until to late 80s, it was a crime against the state to use foreign currency without strict government approval in South Korea.

Interesting. What is the governments best course of action?

 

[Prince Abubu]

Interesting. What is the governments best course of action?

Ban the domestic use of dollars completely. If you are a business needing to bring in machinery and equipment from abroad, only then can you use the dollar and you're to be strictly monitored. People who still have the dollar can come and exchange it for the current market value of Shilling. All and amy black money should be pursued and strictly penalties should be applied to anyone, Somali or foreign, illegally in possession of foreign currency.

Somali Businessmen who wish to do business in Somalia should have most of their assets inside the country. They should have their funds in a Somali bank. Shops and stores should only accept the Shilling and report anyone who is still using the dollar.

 

[felloff]

Central Bank of Somalia: Focus on Digital Currency

Recently, the Central Bank of Somalia (CBS) announced a financial reform package, including an investment of $60,000,000[1] in printing new paper currency. This proposal is little more than a waste of money, as these funds could be better spent regulating mobile money. By focusing on the development of Somali digital currency (SDC) instead of obsolete paper money, CBS can advance the future of all Somalis and take part in the digital money revolution.

In 2017, paper money is quickly becoming a thing of the past, particularly in Somalia, where many citizens lack access to a traditional banking system. Somalis have wholeheartedly embraced the use of mobile money, which is a collective method of exchanging money that permits them to send and receive funds via their cell phones. The use of this technology will help to move the country out of the mindset of the past and into the future of digital currency.

Over the past decade, Somalis have adopted the use of mobile money in a system that is both powerful and fragile. The mobile money process is built on ones and zeros in software applications, allowing Somali citizens to make payments and receive money throughout the world in a matter of seconds. The mobile money system works due to the innovation of the Somali private sector and their through hard work. Currently, problems in the system can only be resolved through these private institutions, which may leave Somali citizens vulnerable to fraud, abuse and mismanagement. The Somali government must step in to protect its citizens, without discouraging the private sector from continuing to strive for greater achievements in this field in the absence of action on the part of the CBS.



Given the state of the Somali economy, the CBS has a unique opportunity to make the Somali financial industrial a leader in the field of digital currency. Investing such a large sum of money in analog money printing is wasteful and unnecessary in 2017. Instead, the CBS should look to removing paper currency from circulating and focusing its efforts on digital currency. It can follow the lead of India, which has taken steps to address corruption by eliminating large denominations of its paper currency and promoting mobile money through a government-owned neutral platform.


The CBS should direct its resources towards empowering current mobile money innovation while protecting the integrity of the system. This can be achieved by creating policies to ensure fair competition and financial stability.

As it currently stands, there are a few companies that have monopolized the mobile money industry in Somalia. This includes Hawala players, banks and mobile money operators. These systems are generally not integrated, creating a situation where users are limited in how they can send and receive funds. The CBS can address this issue, ensuring that anyone using a mobile money system can utilize their money fully across Somalia and the world. It now has the opportunity to introduce a programmable money platform to the people of Somalia. This would allow CBS to remove the monopoly in the industry while encouraging innovation, protecting its citizens, and ensuring that all international financial regulations are followed.

Instead of wasting resources on outdated paper currency, the CBS should invest its funds and talent into building a robust crypto-currency system. This would put Somalia on the cutting edge, as one of the few countries in the world to allow the use of crypto-currency as a national currency. Crypto-currency is digital money that is not run by any government or institution, but the CBS can set both the regulations and policies to implement its use in Somalia. Crypto-currency is the future of currency, and CBS should take this opportunity to invest in this technology rather than outdated paper currency.

There are many types of digital or crypto-currencies currently on the international market. This includes bit coin, Dutch-coin, litecoin, ripple, ethereum and more. These currencies function in the same way that paper money does, and can be used in many places. This type of currency is based on a special field of mathematics known as cryptography, which is a method of secure communications. Cryptography is about hiding information and verifying the source of the information, and has been classified as a weapon due to its importance. In modern computers, cryptography software is widely used to encrypt everything from our email usernames and passwords to other sensitive information.

With the turmoil of recent years, the Somali people have come to trust private institutions over the government. The CBS should not focus its energy and resources on failed Somali currency; instead, it should take advantage of the momentum of the new president’s ambitions and invest in digital currency. By working to implement a digital currency system, the CBS can utilize its funding to ensure that both the Somali financial market and its citizens are protected, while addressing security issues and the financing of terrorist activities at the same time. If the CBS adapts to the technological innovations of the private sector and sets the bar high, all players in the Somali financial markets will be sure to join the market — and all will prosper as a result.

Imagine a Eshilling or Bitshilling imagine Eshilling atms across the country imagine somalia/somaliland currency being electronic and fully accountability imagine being able to charge 0.01cent minimum on all trascations as a form vat this is what we should be looking for.

Someone Call Larry for his views on this

Catch at Camden Eshilling atm in 2020 inshallah

 

[Dhay Geel]

In Somalia the biggest note is 1000 shillings
The smallest note is 1000 shillings
The only note is 1000 shillings

 

[Dhay Geel]

Somaliland tried to do 1 over Somalia.
The smallest note 500 SL shillings
The highest note is 5000 SL shillings

Bare in mind 8500 SL shillings is equivalent to $1

And in Somalia $1 = 30,000

 

[Hemaal]

In Somalia the biggest note is 1000 shillings
The smallest note is 1000 shillings
The only note is 1000 shillings

What was the saying "Kun ba u yar, Kun ..." I forgot

 

[XamarCade]

Somaliland tried to do 1 over Somalia.
The smallest note 500 SL shillings
The highest note is 5000 SL shillings

Bare in mind 8500 SL shillings is equivalent to $1

And in Somalia $1 = 30,000

Somaliland notes are no different than monopoly fake money, you guys have been bamboozled, you've been tricked walaal.

 

[Dhay Geel]

Somaliland notes are no different than monopoly fake money, you guys have been bamboozled, you've been tricked walaal.

Somalia notes are no different either.
The country has not printed money for 25 years yet the last time I went there I received a stack of fresh notes. You tell me how that works.

 

[XamarCade]

Somalia notes are no different either.
The country has not printed money for 25 years yet the last time I went there I received a stack of fresh notes. You tell me how that works.

We're about to print real money, how bout...... never mind :siilaanyolaugh:

 

[Dhay Geel]

Maybe I should take 4 Nigerian fraudster and a printing machine there. Get rich baby.

 

[felloff]

Get me a kodak printer and cotton paper we eating