Somaliland: Local Businesses endorse the use of Local Currency in domestic transactions -Shugri

Local businessmen led by Mr. Mohamed Shugri, the chairman of Somaliland Chamber of Commerce met with H.E President Ahmed Mohamed Mahmoud Silanyo during a closed door meeting held today at the Presidential palace to discuss matters regarding the economy.

Mr. Mohamed Shugri, the chairman of Somaliland Chamber of Commerce speaking to reporters just moments after emerging from the closed door meeting with the President said, “During the meeting we agreed upon with the President on the recommendations of the Presidential high level committee to ascertain the determinants of the inflationary pressures on Somaliland’s economy hence our pledge to work with the government in promoting our national currency.

“The purpose is to encourage spending through our national currency within the local community and especially with locally owned businesses. The higher velocity of money is a result of the negative interest rate which encourages people to spend the money more”, he said.

Mr. Mohamed Shugri, “The usage of our money will also enable the local business community to more fully utilize existing productive resources.

The current government move against foreign currency in domestic transactions is intended to reduce reliance on the dollar and other foreign currencies.