Plans to eliminate foreign currencies as legal commercial tender in Somaliland are complete.
This was revealed following a meeting between the state, Chamber of Commerce and major business concerns held at the Somaliland ministry of finance headquarters in Hargeisa where it was unanimously agreed that prices of all commercial transactions from now henceforth shall no longer be pegged on the dollar or any other foreign currency.
The government team at the meeting chaired by finance minister Zamzam Abdi Aden included the minister of planning Dr Saad Ali Shire, minister of commerce Muse Qassim, central bank governor Abdilahi Hajji Jama Ali and Berbera port Managing Director Ali Horhor while those representing concerns and led by the chamber of commerce chairman Mohamed Jama Sulub included Dahabshil, Telesom, Oomar and Bahsane among others.
Having unanimously concurred that the rampant use of foreign as legal tender in the country is directly responsible for the upward spiraling rate of exchange between the dollar and Somaliland shilling as well as the attendant inflation the gathering said it was urgently imperative that the state issue a decree on the exclusive use of the local council as only legal tender in the country.
Stating that the meeting at her offices was conclusive of two months of brainstorming on the way forward as per ways and means of making the local currency the sole legal tender in the country finance minister Zamzam Abdi Aden said that the agreement reached shall be enforced.
The minister of commerce Dr Muse Qassim who informed that neither the dollar nor any other foreign currency shall be accepted as legal tender in the country as from the 26th May 2015 also warned that those found contravening the arrangement shall be arraigned in court.
Upon thanking the Zaad and e-dahab mobile banking service providers of Telesom and Dahabshil on their ongoing arrangements to utilize local currency as opposed to dollar exclusive use prevalent the central bank governor Abdilahi Hajji Jama Ali said the shift will help facilitate reduction in the rate of exchange and inflation.
The first trumpet towards the use of the local currency as sole legal tender in the country was officially sounded by the finance minister following a meeting with major business concerns in the country on 20 April 2015.