As long as we are tied to Somalia, our economy can never be first world or even second world even with OIL, we will become like Nigeria or even worse as they have a good reserve in comparison to Somalia. Look at Somalia International federal reserves, it's the second lowest in the world, only Chad is lower. The lower your reserves, the less value your currency has.
https://www.globalfirepower.com/reserves-of-foreign-exchange-and-gold.asp
If PL wants to compete itself against a 2nd world nation we need to check and compare what they have stored in terms of gold in either Asian banks or American Banks or UK Banks. Those are the only three real reserves available today. You can check each nation reserve today. U will find poor countries have less reserves and richer countries have larger reserves.
The floating currency or FIAT model is only useful once you 'backed' your currency to begin with in the international market. The Supply/Demand will determine how cherished your currency is depending on your nation's economic activity.
For example if Somalia stores good reserves but has no economic activity to supplement it, our currency is worthless again. The best economic model is to dedicate 20% of your GDP in reserves of gold in order to keep afloat against other nations reserves. While we start engineering an economy internally such as selling oil and bring up the economic activity of your nation. This will mean the Somali currency is in 'demand' because people start buying our oil and using our currency, which will mean the currency traders start evaluating the Somali shilling higher as there is more floating in the International market place.
Check out Somalia Reserves in international Banks. It's horrendous and why our currency is considered useless. If you want your currency to grow in value, back it with gold at least dedicating 20% of your GDP to it and then use your economic activity to increase the supply/demand of it in the international markets by bringing goods and services the world needs. Not Farming though, this won't change your economic situation.
https://www.globalfirepower.com/reserves-of-foreign-exchange-and-gold.asp
If PL wants to compete itself against a 2nd world nation we need to check and compare what they have stored in terms of gold in either Asian banks or American Banks or UK Banks. Those are the only three real reserves available today. You can check each nation reserve today. U will find poor countries have less reserves and richer countries have larger reserves.
The floating currency or FIAT model is only useful once you 'backed' your currency to begin with in the international market. The Supply/Demand will determine how cherished your currency is depending on your nation's economic activity.
For example if Somalia stores good reserves but has no economic activity to supplement it, our currency is worthless again. The best economic model is to dedicate 20% of your GDP in reserves of gold in order to keep afloat against other nations reserves. While we start engineering an economy internally such as selling oil and bring up the economic activity of your nation. This will mean the Somali currency is in 'demand' because people start buying our oil and using our currency, which will mean the currency traders start evaluating the Somali shilling higher as there is more floating in the International market place.
Check out Somalia Reserves in international Banks. It's horrendous and why our currency is considered useless. If you want your currency to grow in value, back it with gold at least dedicating 20% of your GDP to it and then use your economic activity to increase the supply/demand of it in the international markets by bringing goods and services the world needs. Not Farming though, this won't change your economic situation.
