How to reduce inflation in the modern somali republic

[Kizaru]

The West increases interest rates which isn't possible in Somalia for obvious reasons.
Introducing fiscal policy could include reduced spending but reducing spending could impact sectors like education and the military.
The retards in the Somali central bank keep printing money like there's no tomorrow to finance their spending.
wage and price control isn't a viable option nor is increasing taxes.

So far the currency is stabilising but for 1 Somali shilling to be equal to .0018 is far from visible progress

So what can the modern Somali republic do to reduce hyperinflation?

 

[Internet Nomad]

We need a new currency which is backed by gold.

I want to see how fast America will invade us.

 

[Bazed]

We need a new currency which is backed by gold.

I want to see how fast America will invade us.

We'd have a dead president, militant rebel factions and a full scale invasion in the same day.

 

[Internet Nomad]

Do you think somalia should join brics if they had the chance to?

 

[Bazed]

Perhaps having control of sectors such as energy will ensure that we're not too badly impacted when there's a global crisis. Right now we have to minimize shock to our economy before developing strategies to better reinforce our currency. I think it'll take a long time for a proper economic strategy to be fully laid out.

 

[Lowkey]

Print more money

 

[aden1812]

The West increases interest rates which isn't possible in Somalia for obvious reasons.
Introducing fiscal policy could include reduced spending but reducing spending could impact sectors like education and the military.
The retards in the Somali central bank keep printing money like there's no tomorrow to finance their spending.
wage and price control isn't a viable option nor is increasing taxes.

So far the currency is stabilising but for 1 Somali shilling to be equal to .0018 is far from visible progress
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So what can the modern Somali republic do to reduce hyperinflation?

If $100 trillion were deposited into Somalia’s Central Bank, we’d witness extreme inflation, with the cost of goods soaring and the U.S. dollar falling in value compared to the Somali Shilling. it’s important to understand that inflation and currency exchange operate differently. Inflation indicates the rising cost of goods, while currency exchange shows how one currency values against another.

The worth of a currency rests on the trust the population has in it and the international demand for the country’s goods. To boost the Somali Shilling’s value, strategies like increasing the GDP per capita, expanding exports, and advancing skilled labor are essential. However, it’s a double-edged sword. A stronger currency can lead to pricier exports, resulting in decreased international sales. So, it’s a balance that needs careful management (and I don't think we have any trustworthy people to lead that charge or make those decisions).

 

[aden1812]

Exploiting natural resources can be a solution, but that is also a double-edged sword, because if not properly managed, Somali economy can be too reliant on one sector and worse case scenario end up like Venezuela (1 USD is equal to 34.878 VES). the only real solution is 1,000s of schools that can rapidly educate the Somali population and transform them into skilled workers, and develop home grown industries.


It's a balancing act, and many many many countries failed at it.

 

[Internet Nomad]

Exploiting natural resources can be a solution, but that is also a double-edged sword, because if not properly managed, Somali economy can be too reliant on one sector and worse case scenario end up like Venezuela (1 USD is equal to 34.878 VES). the only real solution is 1,000s of schools that can rapidly educate the Somali population and transform them into skilled workers, and develop home grown industries.


It's a balancing act, and many many many countries failed at it.

We need to diversify our economy like the gulf nations

 

[aden1812]

We need to diversify our economy like the gulf nations

I think all proceeds from oil should go into a sovereign wealth fund that invests in competitive business opportunities. Somalia should foster innovation and technological advancement, and not be afraid to lose money on things like chip development or recycling.

 

[killerxsmoke]

We need a new currency which is backed by gold.

I want to see how fast America will invade us.

Shit dont work like that my guy

 

[Hassan77]

We need to diversify our economy like the gulf nations

You realise the gulf nations are essentially a petrol station right?

 

[Internet Nomad]

You realise the gulf nations are essentially a petrol station right?

They are trying to move their economy forward and stop solely depending on oil.

 

[Khaemwaset]

They are trying to move their economy forward and stop solely depending on oil.

Saying they are and actually doing it are different. Look at those stupid oil money projects like the Line. The gulf is gonna get into serious issues when the oil money starts to dry.

 

[Internet Nomad]

Saying they are and actually doing it are different. Look at those stupid oil money projects like the Line. The gulf is gonna get into serious issues when the oil money starts to dry.

They are so stupid when it comes to ideas some times.