The Somaliland central bank has released a high amount of dollars to the local market mostly in the capital city Hargeisa in order to reduce the spiraling rate of exchange that has seen a rise from slshs 6,500 vs. $1 to over 7000 for the same.
The attempts to stabilize the rate of exchange through inflating the market with large amounts of foreign currencies (US dollars) from the central coffers was revealed by Somaliland central bank governor Mr. Abdi Dirir Abdi during a press briefing in Hargeisa where he said the objective of the exercise was geared towards alleviating difficulties among the populace.
The government funded plan saw the Central bank avail local forex bureaus the extra dollars at a low cost in a function overseen by governor Dirir and senior bank officials whose full participation at the Forex’s was received warmly by both traders and ordinary citizens.
“The point is that the high rate of dollar exchange these days should be rated down and that there is more dollars to be brought to the business sectors. If there no more imports through our national port and it is not as busy as before, no transportation of livestock then absolutely the high rate of money exchange fluctuations can happen and we will try our best in reducing these high inflation rate” stated the Governor Abdi Dirir.
The governor also stated that the high rate of dollar exchanges can also be brought by the inflation rates. “We are not more concerned on high inflation rate but all this inflation is made by the business sectors on how they carry about the exchanges when buying their goods.
The rate at which the dollars are exchanged in Somaliland can sometimes be up or down. Many times the exchanges can be done by the expert money exchangers.