9 May 2001
The Somali shilling has been gaining ground against the US dollar in the Mogadishu currency markets over the last four days, following a move on Sunday by the Transitional National Government (TNG) to fight inflation. In an effort to fight the importation of fake currency and resulting inflation, the TNG has pumped US dollars into the money markets. Mahmud Muhammad Ulusow, the governor of the Somali Central Bank told IRIN that the government had employed 16 agents to buy up old shilling notes from the markets. He said the action had enhanced the value of the Somali shilling against the dollar from 19,000 on Sunday to 16,000 on Wednesday. Money traders had become reluctant to accept fake currency since the move, in which an estimated US $100,000 worth of Somali shillings had been bought up, Ulusow said. The government would continue the exercise until the exchange rate fell to 10,000 shillings to the dollar, he added. New currency would be introduced by the TNG, but no date had been set for the launch of the new currency.
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