Somalilandsun – Attributing the out of control inflation in Somaliland to electronic banking services is not only a fallacy but poor strategic thinking
This was stated by politician Ismail Mohamed Buba Hurre during a Briefing to Geeska Afrika in Hargeisa from where he was reacting to recently announced plans by the government towards arresting inflation.
In the announcement the administration of President Musa Behi ordered the two electronic money providers, namely Telesom and Somtel to limit dollar transfer in their Zaad and edahab platforms to only over hundred
“Any amount below a hundred dollars should be translated in the local currency” the order read
Terming this move as erroneous the Opposition politician and senior member of the Wadani party urged government to dig deeper for the root cause of the huge devaluation to the local currency since it is obvious that electronic banking services are not the culprit
“Rather than put in place policies that might injure local business adversely it is better to deal with the root problem which is the out of control minting of new currencies”said Buba
According to the politician the outgoing administration of president Silanyo printed large sums of money which were dumped in the market as a gimmick to hide the clearing of foreign currencies in the central coffers by unscrupulous officials
Urging caution Buba said the good will given President Behi should not be marred by hasty policies
Stressing on the importance of protecting the Zaad and edahab platforms of banking Ismail Buba reminded on the international acclaim that Somaliland has accrued from popularity of the two services
A Somaliland shilling is transacting a 10,000 to a dollar which is almost 40% increase to the rate of 2 years ago
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