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The Somali Shilling is now equal to the West African CFA Franc

Legal tender means the currency that must be accepted by law for debts and payments. While Somalia lacked a strong formal system to enforce this in the early 2000s, the Somali business community effectively made the US dollar the "de facto" legal tender. This was a smart and deliberate move.

Whether or not a formal declaration existed is irrelevant in practice, the community enforced it and sidelined corrupt politicians, warlords, and Ethiopian-backed counterfeiting.

The result was stability, reduced inflation, and the collapse of the counterfeit trade , exactly as predicted back in 2006.



Loool this doesn’t prove I’m some Somali hasbara , it just shows ya'll are spamming nonsense out of resentment. I’m not doing propaganda for humanizing, contextualizing, and being informed about my people.

You are wrong to attribute business acumen or strategic intent to these ganacsato in their adoption of the U.S. dollar. The adoption was necessary because no functioning, central state existed that could prevent counterfeit currency. In fact clans used three different currencies for business - two of which were phased out due to clan politics and excessive counterfeit.

For example, the N20 currency used mainly by North Mogadishu clans were rejected by the south clans (who controlled the economy) - this was not about economics in the rational sense, but an act of economic warfare. Remember, we’re talking about a country that has had no functioning state for over 35 years, where clans kill each other’s doctors and teachers, where people refuse to shop at rival clan businesses, refuse to sell or rent property to each other.

So you either speak as a foreigner unfamiliar with the actual social order here, or you are just indeed a hasbara that regurgitates positive "half-truths" from the net in a deeply mistaken sense of patriotism

Parroting false hope is not patriotic.

Don't make me inaan qashin soo qufo.
 
You are wrong to attribute business acumen or strategic intent to these ganacsato in their adoption of the U.S. dollar. The adoption was necessary because no functioning, central state existed that could prevent counterfeit currency. In fact clans used three different currencies for business - two of which were phased out due to clan politics and excessive counterfeit.

For example, the N20 currency used mainly by North Mogadishu clans were rejected by the south clans (who controlled the economy) - this was not about economics in the rational sense, but an act of economic warfare. Remember, we’re talking about a country that has had no functioning state for over 35 years, where clans kill each other’s doctors and teachers, where people refuse to shop at rival clan businesses, refuse to sell or rent property to each other.

So you either speak as a foreigner unfamiliar with the actual social order here, or you are just indeed a hasbara that regurgitates positive "half-truths" from the net in a deeply mistaken sense of patriotism

Parroting false hope is not patriotic.

Don't make me inaan qashin soo qufo.

It was business acumen and strategic intent, otherwise even using the dollar would have failed. The adoption sidelined the counterfeit flooding the market and cut off the last revenue stream for warlords. The central bank couldn’t stop counterfeiting because Somali notes were too easy to duplicate, while the dollar carried advanced anti-counterfeit protections.

What is this ‘N20’ currency you’re on about? That’s not even accurate history.

By the late ’90s and early 2000s, Sharia courts were governing different parts of Mogadishu, providing stability and creating a Sharia-compliant legal framework for business to operate under.

Somalia at the time actually had low homicide rates , so this idea that clans were “killing each other’s doctors and teachers” is just imagination.

In reality, the public and business community were united across clan lines against the warlords.
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And today is even more different. After the U.S.-backed Ethiopian invasion, the Somali government re-established a central bank which now regulates the entire financial system , a system that’s 100% Sharia-compliant, rooted in community values and ethical banking principles. The fact that the new notes have been delayed until now shows how carefully it’s being handled. Add to that the rise of Somali business networks and fintech, and when they issue, the system will be strong enough to stabilize it.

There is no such thing as ‘rival clan businesses’ or whatever nonsense you’re spewing. Somalis freely do business with one another and cross-invest across regions, cities, and neighborhoods. Any major Somali business you look up has investments and branches spread across the country. People sell, rent, and trade with each other regardless of clan background.

Somalia is, in fact, a horizontally high-trust society, and that trust has been the foundation of Somalia’s business success.

Also , most of what I’ve shared comes from Somalis who lived it and studied it. I’m not speaking as a foreigner.

I’m not a “false patriot” just because I refuse to share your resentment or biases. If parroting slander and misrepresentation makes one a ‘true patriot,’ then that says more about you than me.
 
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