Abstract: After the collapse of central government in 1991 Somalia did not enjoy economic and financial wellbeing. The Somali Shilling experienced vulnerability; an extreme devaluation and instability faced. The business communities preferred the use of dollar and left the national currency (So.Sh.). This paper investigated the extent of national currency vulnerability. The study found that instability of the Shilling value in recent years is the principle cause of dollarization in Somalia. The future value of So.Sh depends on how far the Central Bank of Somalia works in the monetary field. Nowadays, an idea of setting up a policy for currency reform is publicly heard, this study gives attention that market failure is inevitable if not well established and this be a big achievement if the policy succeed without economic and financial interruption.
Keywords: Somalia, Somali Shilling, Currency, Dollarization, Economy, Monetary Policy, Currency Changing.
Title: The Vulnerability of Somali Shilling, Appearance of Dollarization and the Propose to Reform Currency: A Descriptive Study of Somalia After 1991
Author: Najibullah Nor Isak
International Journal of Interdisciplinary Research and Innovations
ISSN 2348-1218 (print), ISSN 2348-1226 (online)
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