House of Elders summons Central Bank governor, two ministers over inflation

Hargeisa, May 16:- The permanent committee of the House of Elders has met yesterday with Somaliland Central bank Governor and ministers of Trade and Interior for the control of inflation.

The Committee summoned the Central Bank governor Mr. Ali Ibrahim Baghdadi, the ministers of Interior Mr. Mohamed Kahin Ahmed and Trade, Mr. Mohamoud Hassan Saad (Saajin) to discuss on ways to solve the effects of high inflation which spiraled up in recent months.

During the meeting, The Committee listened presentations from the officials and their plans to control the inflation and food prices.

The committee and the Officials have agreed the necessity to lower the prices of commodities in-line with the decrease of the exchange rate of USD to Somaliland Shillings and get solution for the recurrent inflation of the country.

Somaliland Central Bank governor Ali Ibrahim Jama (Baqdaadi) shared with the committee a recent evaluation done by the Central Bank.

The Governor also said that they will engage the religious leaders to take their part of orientation and make advice to the businessmen to lower the prices of commodities responding to the decrease of the exchange rate.

“We are also planning to engage the Sheikhs of the country because in our community most of the people they listen and respect Imams/Sheikhs. We want to ask the sheikhs to advise the businesses to lower the price with the exchange rate.

Last three months the exchange rates of US dollars to Somaliland Shillings dramatically changed. Previously, the exchange of One USD was ten thousand Somaliland Shillings (US $1= 10,000/ SL SH). Now it fluctuates around the US $1= 8,200 SL SH, that is a change of around 20%.

Unfortunately, the commodities priced in Somaliland Shillings are still valued in the previous exchange rate of (US $1= 10,000/ SL SH).

Somaliland government has made great efforts to control the constant and worsening inflation of the country.

With a presidential executive order, the government banned the use of mobile money for the transactions under USD $100 value. Central Bank also has taken steps to regulate the daily exchange rates and monitors the money market regularly.

Hamse Yasin, Hargeisa,