Briefing Room

Somali shilling hits a new low against US dollar after large amount of fake currency entered the market

BARTAMAHA — Business in many parts of central Somalia’s region of Hiiraan stalled on Sunday after Al-Shabab militant group imposed ban against the only Somali banknote in circulation following allegations of fake denomination distributed recently.

Residents in Beledweyn town, the provincial capital of Hiiraan, said the livestock and food and grocery markets were closed since Saturday after the business owners rejected to accept the 1000 banknote, the only Somali shilling currently in circulation.

“The business people rejected the 1000 banknotes saying that it was faked.” said Abdulle Abdirahman who trades in Beledweyn livestock market.

“There are rumours that faked currency came from Puntland.” he added.

Following the rumours, the militant group Al-Shabab, which currently controls parts of the region’s rural villages instructed the local traders and foreign exchange shop owners not accept the alleged faked banknotes leading to standstill in the main markets including Beledweyn town controlled by the authorities under Hirshabelle state.

Meanwhile, the development soon impacted on the rate of the foreign exchange, mainly the rate of the dollar when converting into Somali shilling which jumped up hundred percent.

Authorities in the region and the Federal Government officials are yet to comment on the issue despite already negatively affecting lives of locals.

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