By: Sharmarke Abdi Musse
The people of Somaliland from north to south have been encountering serious inflations. The dollar rate has reached unprecedented rate.The living conditions have been invariably inflated by the increase of dollar rates since the livelihood is based on Dollar currency.
People are exasperated by the existence hard conditions in Somaliland, strikes against this issue have started, and some small and Medium enterprises in Berbera and Hargiesa have been temporary shutdown due to getting less customers and failures to adjust cash influx with Dollar rate.The business transactions are based on dollar currency and thus led the entire livelihood to evolve on foreign currency.
The local currency is less valued, and If dollar goes high, life tends to be harder. Moreover, I may not be an economist, but this issue is very loud, and it doesn’t need an expert to cite out since it is a daily routine faced by the hoi polloi.Families which used to be quite fit in terms of income now have tendency to encounter hardships. Livelihood has thoroughly been disrupted and this comes as result of absence of focused and visionary finance and foreign exchange management policy.
The Government under the Ministry of Finance is mandated to manage fiscal policy including foreign money, exchanges and monitoring of livelihood as well; but this incumbent Government as well as previous administrations failed to set aside A National Economic Policy for Managing the finance policy, foreign exchanges and Economy at large.
Certain business groups or companies are governing the foreign money exchange instead of Bank of Somaliland. The Administration should style up and focus on mundane issues affecting the society instead of focusing attention on political alienations, vindictive Intentions and embezzlements. Issues such as National Economic growth, foreign exchanges, Environmental protection and youth Migration are given little attention by the Government.
The Policy of the Government has tended to be a tool of violating fundamental rights and Humanity, a tool of dividing the cohesion among community and undermining the National Interest.
However, the main factors which cause dollar rates to fluctuate and inflations skyrocket are many and should be curbed before it get out of hands.
The inflation and increase of Dollar rates in Somaliland takes place as result of absence of sustainable and visionary Policy for managing foreign exchanges and livelihood. There are no Price controlling policies in order to make it in line with the price of the vary commodities with the per capita income of the People of Somaliland. Zaad service and E-Dahab both of them have been taking pivotal role in exaggerating dollar rates and inflations.
The inevitable importations of varying food products such as sugar, Rice, Milk and Juices from different countries have attributed to this inflation and the livelihood hardships in Somaliland. All the stable foods by which Somaliland people get use to are imported from foreign countries.
Furthermore, the technocratic people in the field of Economic, Finance and Banking are not employed at respective bodies such as Bank of Somaliland and Ministry of Finance. Employees are recruited through clanlines and tribal criteria, and this has caused the failure seen in the National Economic policy, including management measures which could be used to manage livelihood and Foreign exchange particularly.
In order to save its face and the brewing hard conditions of living, the Government should put in place Sustainable and visionary Foreign exchanges and Economic Policies. The exchange should be based on Somaliland shillings.
The Zaad and E-Dahab transactions must be accountable. Policies should be put in place to manage these transactions. The local products must be promoted by the Government such as traditional stable foods (Maize and other cereals products). Commercial farming sectors must be encouraged and supported by the Government in order to improve food production at local levels, and reduce the food imports. Incentives should be given anyone who is interesting to establish commercial agricultural sectors.
Peace and Prayer
Sharmarke A. Musse ( Bsc, Msc)
Hargiesa-Somaliland
Email: jamaal_77@hotmail.co.uk
