The Devastating Local Currency and the Unofficial Dollarization in Somalia

Ahmed Nuh YUSUF; Abdurrahman OKUR

doi:https://doi.org/10.25295/fsecon.2019.03.003

Makale detayları

The Devastating Local Currency and the Unofficial Dollarization in Somalia

Yazarlar:

Ahmed Nuh YUSUF | Abdurrahman OKUR

Yayıncı:

Ahmet Arif EREN

Ana Başlıklar:

Sosyal Bilimler

Dergi:

Fiscaoeconomia 2019 Vol.3 Issue 3, pp.42-57

Belge Tipi:

Makale

Yayın Tarihi:

9/2019

Belge Dili:

İngilizce

Document ID (Org No.):

2000710625

Sıklık:

Üç Yıllık

eISSN:

2564-7504

DOI:

https://doi.org/10.25295/fsecon.2019.03.003

Özet:

 

Currency devaluation and prevalent unofficial dollarization in Somalia inspired the volatility of exchange rate. U.S dollar has become a good choice to store the value to prevent the volatility of the Somali Shilling and its frequent devaluation. Almost all price tags of products and services are charged in dollar form including the salaries of public and private employees, taxes collected by the central government and FMS, rentals and school fees. Commercial banks deposit, lend clients and charge bank fees solely in USD. The only remaining one denominator of the Somali Shilling in the markets is heavy to carry, old and damaged to be in circulation and susceptible to be faked. The study employed time series analysis to investigate the volatility of the exchange rate and its relationship with the dollarization using daily nominal exchange rate data for the study period 2009–2018. Empirical results indicate that the exchange rate regime has no major consequence in promoting dollarization. Introducing new domestic currency is deemed very necessary, but considering the challenges faced by the weak central authority, such initiative is hard to be achieved in the near future.

Makale detayları

The Devastating Local Currency and the Unofficial Dollarization in Somalia

Yazarlar: Ahmed Nuh YUSUF | Abdurrahman OKUR

Yayıncı: Ahmet Arif EREN

Ana Başlıklar: Sosyal Bilimler

Dergi: Fiscaoeconomia 2019 Vol.3 Issue 3, pp.42-57

Belge Tipi: Makale

Yayın Tarihi: 9/2019

Belge Dili: İngilizce

Document ID (Org No.): 2000710625

Sıklık: Üç Yıllık

eISSN: 2564-7504

DOI: https://doi.org/10.25295/fsecon.2019.03.003

Sayı

Yazarlar:

Ahmed Nuh YUSUF | Abdurrahman OKUR

Yayıncı:

Ahmet Arif EREN

Ana Başlıklar:

Sosyal Bilimler

Dergi:

Fiscaoeconomia 2019 Vol.3 Issue 3, pp.42-57

Belge Tipi:

Makale

Yayın Tarihi:

9/2019

Belge Dili:

İngilizce

Document ID (Org No.):

2000710625

Sıklık:

Üç Yıllık

eISSN:

2564-7504

DOI:

https://doi.org/10.25295/fsecon.2019.03.003