Puntland oo lacago gaar ah soo daabacanaysa

[Fiqikhayre]

Jacfar the Minister explained it above eloquently. The cure for preventing the Somali shilling disappearing altogether is to print new Somali Shillings as this will help with the flow of money as there is not enough right now.

 

This is the issues we ought to talk about. Not half cooked stories and their misrepresentations of it.

[nuune]

Imagine Fiqikheyr being the Minister of Oil of Puntland, in his office, a nomad from the miyi has entered and first thing the nomad said was:

 

Nomad: Wasiirka saliidoow quraaradan yar baan wataayee bal iigu dhibci xoogoow saliid ah

Fiqikheyr: Shiidh, shiidh, saliid maaha ee waa shidaal, shiidh, misinformationkan yaa kugu akhriyey, shiidh

Nomad: Shidaalkaba iigu dhibci isagaanba shidan oon dab ka dhiganiye

Fiqikheyr: waryaa waardiye, caagaas shan litirka ah ka soo bixi miiska hoostiisa oo ninkaas dhalada u buuxi, una sheeg waa shidaal ee ma ahan saliid cadeey

[Fiqikhayre]

waryaa Nuune there's a problem how would you solve it? There is a shortage of Somali Shilling and what usually happens is big businessmen start hoarding.

 

So in order for them to release their Somali Shilling there is a need for printing of more Somali Shilling in order for them to release their hoarded money into the flow/system of the market in order to stabilise it and prevent things going up and prizes exploding. It's market confidence and reassurance and printing more currency can actually help stabilise the Shilling by showing that there is enough money out there.

[Fiqikhayre]

The tricky part is of course to release the right quantity of money and I am confident Puntland and this finance minister will do their best as they kept the Shilling and Dollar exchange rate stable for the past three years.

[nuune]

and printing more currency can actually help stabilise the Shilling by showing that there is enough money out there.

Fiqikheyr, how printing more money could stabilize the shilling, the market or the economy sinks deep when there is more money out there than goods, the key or the secret thing for any Central Bank is to keep the level or the follow of currency in the market balance, so they watch it closely, hence why Central Banks adjust the rates every often.

in our case, sarriflayaal dallaalo ah ayaa go'aansado how strong or weak our currency is, they overtook the Central Bank,

 

I am not economist, but maybe it is your area of expertise, and your input is highly appreciated regarding that quote of yours!

 

 

 

 

Lets all keep this discussion smooth and clean, I think it is going well now, keep it up folks

[Jacpher]

Sxb Fiqii, I am hearing the market is so out of shape today the dollar value is worth half of what it was yesterday. Tell me how is that benefit the local market, the small business or the overall economy? The little investment Sir Duke and I had in the market cirkey aaday. We have no option but to look at ximan and xeeb inta yaree noo hartay. No protection at all here.

[Dr_Osman]

I have to agree with some of the posters its very unusual for regional government to have its own central bank, defence force, navy, airforce, intelligentsia, special divisional units in the police and defence force. It is exploiting its own resources as a state. It holds its own high level meetings on its own with other nations separate from other somali regional admins and mogadishu. It has its own planning and international cooperation ministry another word I believe being disguised as foreign ministry. It has its own flag, anthem, and government system. In its constitution it says puntland is indepedent or madaxbanan.

 

Some people have observed the above and have come to the conclusion based on those facts that puntland is either setting up for secession, hadee to be quite honest the evidence is quite overwhelming to just ignore it, thats why I kind of stayed out of this topic!!!

 

As for the currency itself, I think its well overdue. When the oil starts flowing through can you imagine the fluctation that will occur and the problems this will cause the locals, if it is centrally administered in garowe the inflation can be taken away from the local abdi hustling in bosaso-garowe-galkayo-badhan-buhodle-galdogob-las qoray-bocame and other areas of the state when fluctation occurs, but it will be insanely difficult for the government to remove inflationary pressures from the locals if it is not printing the shilling and if they dont print the shilling they will need to rely on business-men to unite and regulate the economy themselves which is quite difficult in competitive market such as Bosaso, Where every Abdi cares about its bottom line.

 

So far the Business committees in the state focuses more on investment planning and diversifying investment into other key areas. For example there is no point having 4 tuna factories, when it could be diversified into other industries. This is what the business commitee is trying to tackle and other good business practise measure. However they are not regulating the shilling as that is the government responsibility to put in place regulatory measures to ensure the local citizen doesn't feel the pinch when traders decide to sell and buy hard currency. It is a form of check and balance and I welcome it.

 

I believe Puntland should remain a free market economy, its crucial for development and it is in puntland's blood to trade, however we need regulations and this measure by farole is a good step towards that direction. To regulate the shilling will mean currency exchange will not be decided in the market-place anymore but in the Central Bank of Puntland and the market place will be policed to make sure it is being enforced. It sets up a fair business environment where the locals will not feel the pinch as much regarding inflationary hikes because it will be set by the government and will be alot more stable then it is now because the market decides.

 

This will not mean that puntland market will not be a free market place, it will be. If an Abdi wants to sell his fish in the market for $2 dollars a kilo, if another trader sells it for $1.00 a kilo then the people can decide who they go with. The market will be a free market, however the police will be Puntland Central Bank laying down the rules on how the business community plays. Gone are the days when the shilling drops but the goods remain the same.

 

Can you imagine you have $100 dollars and the market place said to you, that $100 dollars can get you 10 cartons of shani, however tommorow it can only get you 3 cartons? thats inflation my son and it needs to be regulated by the govt to make sure the shilling exchange rate remains constant against goods so the buyer and traders dont feel the pinch.

[Xaaji Xunjuf]

Dr osman you are a secessionist the garowe clan enclave is part and parcel of somalia its ruled from mogadisho by sh sharif. Even in the near future you wont have autonomy

[kingofkings]

Xaaji Xunjuf;801530 wrote:

Dr osman you are a secessionist the garowe clan enclave is part and parcel of somalia its ruled from mogadisho by sh sharif. Even in the near future you wont have autonomy

I think you're describing your failed enclave. See you in Mogadishu regarding your future.

[Carafaat]

Fiqikhayre;801445 wrote:

waryaa Nuune there's a problem how would you solve it? There is a shortage of Somali Shilling and what usually happens is big businessmen start hoarding.

 

So in order for them to release their Somali Shilling there is a need for printing of more Somali Shilling in order for them to release their hoarded money into the flow/system of the market in order to stabilise it and prevent things going up and prizes exploding. It's market confidence and reassurance and printing more currency can actually help stabilise the Shilling by showing that there is enough money out there.

Fiqi, I thought Puntland is introducing a new currency but printing the same Somali Shilling whil cause inflation, prices will go up and the shilling and people of Somalia will loose value.

 

This is the same thing Cade Muuse did and it can be considered a theft.