Somaliland : Zaad Service Does Not Catalyze Rate of Exchange


Somalilandsun- Though Telesom is a private company it has since inception strived to undertake services that are entirely citizen and client beneficial
This is per a statement released by the giant communication company that also runs Zaad a mobile banking service in response to a presidential decree restricting the amount of funds transferable electronically, as a prelude to harnessing massive local currency devaluation.
The presidential decree which targets not only Zaad but dahabshil’s e-Dahab service follows decisions reached at an extraordinary cabinet meeting chaired by president Ahmed Mahmoud Silanyo and geared towards arresting the prevalent downwards fast spiraling value of the Somaliland shilling against the US dollar.
Following the meeting outcome as pertains to institutionalizing the use of local currency in all transactions as opposed to the prevalent predominant use of US dollars the President, Ahmed Mohamed Mohamoud “Siilaanyo”, decree prohibited mobile money bankers both Zaad and eDahab , permit subscribers use their the hard currency for transactions of less than one hundred US dollars.
In its response to the presidential decree the Telesom statement Read

Press statement: Zaad Service Does Not Catalyze Rate of Exchange
Quote- “In reference to the decision by the government of Somaliland in which our e-banking service Zaad, is behind the high devaluation of the local currency, Telesom company hereby wishes to differ otherwise.
Telesom company which clearly feels and understands the difficulties afflicting citizens as per the high inflation and severe drought prevalent countrywide, has as its policy pursuit both sole as well as in cooperation with other stakeholders any and all measures put in place to alleviate economic and other constraints.
To this effect we hereby attest to the fact that Telesom company has continuously and on various occasions played its utmost best towards arresting devaluation of the local currency in close cooperation with the central bank and government of Somaliland in pursuit
In this endeavor we have stood shoulder to shoulder with the central bank and to extension the government as pertains infusion of millions of dollar into circulation as a measure geared towards enhancing the value of the local currency over foreign ones.
While these acts have both been taken orally and print it is also worth noting that Telesom has injected a large amount of shareholders money as Zaad service capital and operational costs, thus further proof that the company has no malice.
Similarly it is discernible and without doubt to all that Zaad service has played a major part in developing the country’s economy through ease of access to funds by all cadres of our citizens wherever their location both urban and rural. This also includes not only cash transfers but ease of basic commodities purchase.

A good example of how our S-banking service plays a major part in national issues can be ascertained in ongoing drought relief aid in which Zaad has emerged as the best and swiftest method used by national drought relief committee, individuals and organizations to contribute and disburse aid.
For Zaad All the above combine go along to prove that the e-banking service is not has not been a catalyst for currency devaluation in its eight years in operation in which the country’s rate of exchange against the dollar has fluctuated with either devaluation or increased value at one time or another.
In the meantime it is worth reminding that Telesom is a company with nationwide operations with provision of state of the art innovations and services devoid, as per policy, facilitation of any activities targeting any setbacks or constraints to the citizenry.
Finally Zaad is a popular e-banking mode whose services are broadly utilized in both urban and rural nationwide thence impossible, technically, to adapt to new guidelines decreed by the state within a duration of 24 hours.-Uquote
Allah Mahad Leh