Somali Currency Has Huge Problem

[DR OSMAN]

Our currency is so weak because there is nothing backing it. We haven't pegged it to the USD, we don't have gold reserves for it. What's the point of printing paper notes and there is nothing of value backing it?

This is important we sort out or else everything we want to buy from the outside will be to expensive for the locals. If our currency was strong, it would be easy for us to build a port, roads, etc. But since it's not worth anything, we will need USD and there isn't enough USD flowing around our market. What is the answer?

Here is the global gold reserves backing foreign nation currency, so their currency is always worth something valuable.

https://www.globalfirepower.com/reserves-of-foreign-exchange-and-gold.asp

The old reserves used to be in London and New York, but nations are quickly withdrawing and placing it in Asia where the economy is booming and where 60% of the world's reserves are. Only 40% are in Europe and America now. There is shift in global gold reserves. That is why many nations are going to China for foreign investment as the european/americans only own 40% of the gold today.

 

[DR OSMAN]

This is really important we define our economy, if we just think exporting oil is enough, then we rely on floating economy on the stock exchange in new york, once they remove oil and no-one needs it, you will have broke economy. You never tie your economy to shifting commodities like oil, steel, iron, or any natural resource because this is set the price in new york stock exchange. Your economy will always go up n down because of supply/demand in other nations.

Somali needs to store up reserves of gold in asia like responsible nations and not rely on stock exchange products like OIL. Lets not do a fake currency like SL, their shilling isn't balanced against gold, usd, or anything, it's made up just for their internal economy, but outside it's worth nothing. To have a currency worth something you need to do it with reserves or float it like somali shilling which currency traders decide and that's not good idea 1 dollar worth 22,000 shilling now. Why? cause our shilling isn't in demand in the world, so it's terrible to float it. We need reserve backing it as small nation.

 

[DR OSMAN]

The reason Somalia is third world country is you refused two options.

1. Set up a gold reserve for your nation and back your currency and credit rating
2. Float your currency, which you did. But your currency isn't used in global market, so it's worthless and why it's 22000 shilling for 1 dollar when traders begin trading in market place.

So it's inevitable Somalia must join the IMF dependent nations, those are for nations that do not want to plan their economy and prefer hand outs. Somalia is apart of the 'IMF customers' which are not only us but nations who fail to set aside 'gold' for they're currency. For example when u sell oil, u will buy cars, houses, etc which is vulnerable to 'market pricing', while your govt will forget to set aside a portion for gold reserves due to corruption. Hence the cycle continues

 

[TekNiKo]

I blame EVC/Golis/Zaad services these completely ignore the Shilling and promote dollar

 

[DR OSMAN]

I blame EVC/Golis/Zaad services these completely ignore the Shilling and promote dollar

We might as well be a state of america if we are tied to their currency. American Reserve bank decides our market. We are not free market whatsoever.

 

[TekNiKo]

We might as well be a state of america if we are tied to their currency. American Reserve bank decides our market. We are not free market whatsoever.

Failed state = failed economy nin aan tashin wa loo taliya