DOCSLIB.ORG

Somalia Recent Economic Developments and Medium-Term

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Somalia Recent Economic Developments and Medium-Term ReportNo. 6542-SO Somalia Public Disclosure Authorized RecentEconomic Developments and Medium-TermProspects February10, 1987 Country ProgramsII Easternand SouthernAfrica Region FOR OFFICIALUSE ONLY Public Disclosure Authorized U Public Disclosure Authorized Public Disclosure Authorized Dmiuf. eW_ ] MUMaA_M-ay btured tecipients a"un. ks contemay n otherwise CURRENCY EQUIVALENT Currency Unit = Somali Shilling (So. Sh.) = 100 cents ABBREVIATIONS ADC - Agricultural Development Corporation AMF - Arab Monetary Fund ASAP - Agricultural Sector Adjustment Program CPE - Centrally Planned Economics CPI - (Mogadishu)Consumer Price Index CSD - Central Statistical Department DAC - Development Assistance Committee DOD - Debt Outstanding and Disbursed ECA - UN Economic Commission for Africa ENC - The National Commercial Agency HASA - Hides and Skins Agency MNP - Ministry of National Planning MOF - Ministry of Finance OECD - Organization for Economic Corporation and Development OPEC - Organization for Petroleum Exporting Countries NBB - National Banana Board ONAT - Farm Machinery and Agricultural Services Corporation PIP - Public Investment Program TYDP - Three-Year Development Plan (1979-1981) UNHCR - United Nations High Commission for Refugees GOVERNMENT OF SOMALIA FISCAL YEAR January 1 - December 31 FOR OMCIL US ONLY This reportis based largelyon the findingsof an economic missionwhich visitedSomalia during June-July 1986. The missioncomprised Messrs. SwadeshBose (MissionChief), Jack van Holst Pellekaan (agriculture),George Beier (publicinvestments), Ashok Khanna (industry), AlbertoAgbonyitor (micro-economics), Thorveld Moe (externaldebt, consultant), and Ms. Seema Hafeez (publicfinance, consultant). Swadesh Bose is the principalauthor of this report. The draft reportwas discussedwith the Somaliauthorities by Messrs Bose and Beier in January 1987. --------------------------------------------------------------- __--------- Thisdocument has a restricteddistribution and may be used by recipientsonly in the performance of their officialduties. Its contentsmay not otherwisebe disclosedwithout World Bank authorization. SOLIAt RECENTECONOMIC DEVKLOPMHNTS AND MEDIW-TERM PROSPECTS Table of Contents Pate No. COURY DATA (i-iii) EECUTIE S ARY (iv-ix) CHAPTERI Introduction 1 Scope of Report 1 Background 2 An Overview 4 CHAPTERII RecentEconomic Developments 6 ProductionGrowth 6 DomesticInvestment and its Distributionby Sector 9 Macro-EconomicImbalances 10 Balanceof Payments 13 ExternalDebt 16 Fiscal and MonetaryDevelopments 21 Key Performanceand IncentiveIndicators 26 CHAPTERIII Progressof PolicyReform and RemainingIssues 30 A. Liberalizationand Incentivesto Promote 31 Production B. ExchangeRate Regime 36 Background 36 Evolutionof ExchangeRates 37 Operationof the Free ForeignExchange Market 39 Effectsof the ExchangeRate System 40 C. FiscalPolicy and PublicExpenditure Program 41 PublicSector Resource Mobilization 42 CommodiryAid Utilizationfor the Budget 44 PublicExpenditures 46 PublicSector Salaries 50 D. Summarvand Recommendations 50 CHAPTERIV Medium-TermProspects 54 Constraints 54 GrowthProspects 55 Balanceof PaymentsProspects 57 Debt Relief 61 GovernmentBudget Prospects 67 STATISTICALAMN=E 71 SOMALIACOUNTRY DATA Economic Indicators ONPPer Capita n US3281(19865)1 Annual Rate of Growth of GDP at Constant Factor Cost (t) GrossDomestic Product in 19865 (FiscalYears) US$ Min X 1980-83 1984 1985 CDP at MarketPrIces 1516.0 136.0 4.6 3.6 8.3 Investment 232.1 15.3 ResourceBalance -275.5 18.2 Export of Goodsand NFS 14096 9.8 Importof Goodsand NFS 416.1 27.4 OutputIn FY 1985 ValueAdded (FactorCost) Agriculture 829.1 67.6 Industry 127.2 8.8 Services 482.7 38.6 1439.9 lW-. CENTRALGOVERNMENT FINANCE 1980 1981 1982 1988 1984 1986 ti l l l1t o n So. Sh) TotalRevenue 1421 2268 2769 4263 8979 5220 CurrontExpenditure 1892 2295 2906 4716 8140 9918 CurrentSurplus or Deficit(-) -861 -32 -146 -463 -4161 -4898 Investment Expenditures la8 1426 2481 1920 3182 7949 Overall Deficit -1711 1467 2689 2_83 7343 12638 l/Exchangerate used for conversioninto US dolarsis 1US$ = 63.6 So. Sh. This exchangerate is derivedby assigning50 percentweight to the officialexchange rate and 50 percentweight to the averageof the commercialand free market rates. BALANCEOF PAYMENTS 1960 1901 1932 t 1914 1901 MerchandisoExports (f.o.b) 134 114 157 101 62 9J MerchandiseImports (c.l.f.) -461 -422 -434 -41U -496 -362 Trade Balance -W1-ai 7 -J49 -5M N1 Non-factor service -6 9 23 24 -3 - Interest Paymwnt. -2 -10 -14 -21 -44 -43 Private transfers, not 57 64 go 51 72 29 CurrentAccount Balance -271 !i5 -2Wf -2WC -ST -2W1 OfficialLoans, Not 143 16S 157 140 174 179 OtherCapita 37 79 123 1in 46 69 (Incl.rrors A omissions 21 3 -36 -39 -46 -36 OverallBalance -27 -13 -44 -86 -139 so RATEOF EXCHANGE W1101l Rate From1973 to June39, 1901- US81.0* So. Sh.6.295 July1, 1981-Juno3J, 1982- A dualexchange rate with: USS1.11a 6.295(for essential lmports) USJ1.49a 12.59(all other foreign transoctleas) July-l, 1902-Oct.22, 1983 -- USJ1.00a So. Sh. 15.227 Oct.23, 198W-Sept.14, 1914- USSn.OOa So. Sh. 17.55 Sept.15, 1094-Doc. 31, 1984 - USS1.40 So. Sh 26.00 Jan. 1, 1986-Feb. 28, 1905- USS1.00a So. $h. 36.09 OfficialRate Free MarketRate 1985 March 37.0 91.4 June 40.6 97.8 Sept. 40.6 100.7 Dec. 42.5 114.7 1986 Jan. 64.5 114.8 March 82.5 138.6 June 74.5 152.3 sept. 86.6 134.0 Dec. 90.5 132.0 - iii. MONEY.CREDIT AND PRICES Doe. Doc. Doe. Doc. D1c. Doe 1960 19 1902 19118 1964 165 (MillionSo. Sh) Bank Claim,on Government(net) 1,982 2,260 2,199 1,805 4,378 6,252 Bank Claim on PrivatoSector 426 675 1624 2298 8727 4024 Bank Claimson PublicEnter. 1651 1722 1890 1168 1511 2671 Mon.ySupply (MI) 2,768 8,619 $,911 4,167 6,676 9,117 (IndexNumbers) ConsumerPrice Index (1977=199)218.7 818.4 848.2 624.0 1996.6 1867.9 AnnualPercontage Change ConsumerPrice Index 69.0 44.6 22.6 36.4 92.1 37.9 Bank Clalm on PrivateSector -4.7 85.0 102.4 41.2 62.5 6.9 BankClaim on PublicEnter. 21.8 11.9 -24.6 -19.6 29.9 87.1 MoneySupply (MI). 19.2 80.9 0.1 8.8 22.2 79.5 MECHANDISEEXPORTS Av*rcog 199-62 1968 1984 1986 USSIMIn _ USS Min _ US SMln X USS Min X Livestock 1M1.$ 79.8 72.0 71.5 83.1 5$.4 66.9 71.4 Bananso 9.4 7.3 15.9 14.9 14.1 22.7 1 J. 14.1 Met &MtA Products 9.6 9.4 9.2 9.1 - - - - Hides and Skins 6.2 4.0 1.5 1.5 8.9 6.8 4.8 4.6 FishA Flh Products 1.8 1.9 2.8 2.8 0.4 0.6 0.2 0.2 Others 10.2 6.9 9.7 9.7 19.5 17.0 9.0 9.7 TOTAL 1HEl. 19.-.7 199 . 62. 9i51 liU. EXTERNALDEBT US$ Min. Public Dobt (Doc.31,1989) 1542.7 DEBTSERVICE RATIO (1965) X Accrualbasis 104.0 Cash basis 48.9 IDA LENDING(DEC. 31. 1986) Outstanding and Disbursed 215.23 Undisbur.ed 47.94 Outstaning Inc. Undisbursed 268.17 - jv_ EXECUTIVESUMMARY INTRODUCTION 1. Somaliais among the least developedcountries of the world. Endowedwith ratherlimited known naturalresources and a fragile environmentfor agriculture,it faces formidableconstraints to economic developmentin the face of a 3 percentannual growth of population. Livestockproduction accounts for nearly40 percentof GDP and 80 percent of exports,but cannotincrease rapidly since the capacityof the rangeland has nearlybeen reached. A rapid growthof crop productionwhich accounts for about 12 percentof GDP will requireinvestments in irrigation rehabilitationand development,as well as in other infrastructure, researchand extension. Developmentof the tiny industrialsector is constrained,among other things,by a scarcityof skills. Somalia's economicdevelopment is a challengingtask requiringsound policies. On the contrary,pervasive Government controls led to grosslyinefficient resourceuse and hinderedgrowth in the 1970s;and for a numberof years Somaliahas been sufferingfrom seriousdomestic and externalfinancial imbalances,rapid inflationand debt servicecrisis. Since the first ConsultativeGroup meeting in 1983,the Governmentwith the supportof the donor communityembarked on a programof policyreform to achievethe twin objectivesof financialstabilization, and economicadjustment and growth throughfostering greater market orientation. Recent EconomicPerformance 2. Real GDP growthin 1984 and 1985 was between3 and 6 percentper year originatingmainly from livestockand crops. The reformprogram involvingtrade liberalization,exchange rate reform,and dismantlingof agricul-uralprices and marketingcontrols, with favorableweather, led to the recoveryof productionand exports. For two consecutiveyears, productionof crops particularlyfoodgrains has increasedremarkably. Maize productionincreased from 235,000tons in 1983 to over 380,000tons in 1985 (Table2.2). Export earningsincreased from $62 million in 1984 to $93 millionin 1985 as the searchfor new marketsfor livestockbegan to yield results. Real economicgrowth was accompaniedby a modest declinein importsfrom $406 millionin 1984 to $362 million in 1985 as increased domesticproduction led to reducedfood imports. Domesticinflation declinedfrom 92 percentin 1984 to about 37 percentin 1985 and 1986. Therewas a marginalreduction in the currentaccount deficit on the balanceof paymentsdue considerablyto about $150 milliondebt relief obtainedin 1985. Still new paymen-tsarrears were accumulatedin 1985 which added up to total arrearsof $173 million. There was modest improvementof the budget deficitas domesticrevenue made some recovery. Implementationof PolicyReforms 3. After the relapsein 1984, implementationof policyreform improvedin 1985 and has continuedthrough 1986. Pricingand marketingof most agriculturalgoods have been liberalized,major price controlshave been dismantled. Most of the controlson exportand importtrade have
Load more

Recommended publications
  • Somalia's Mighty Shilling
    Somalia’s mighty shilling The Economist March 31, 2012 1 / 12 Hard to kill • A currency issued in the name of a central bank that no longer exists 2 / 12 An expression of faith • Use of a paper currency is normally taken to be an expression of faith in the government that issues it • Once the solvency of the issuer is in doubt, anyone holding its notes will quickly try to trade them in for dollars, jewellery or, failing that, some commodity with enduring value 3 / 12 An exception • When the rouble collapsed in 1998 some factory workers in Russia were paid in pickles • The Somali shilling, now entering its second decade with no real government or monetary authority to speak of, is a splendid exception to this rule 4 / 12 A central bank • Somalia’s long civil war has ripped apart what institutions it once had • In 2011 the country acquired a notional central bank under the remit (authority) of the Transitional Federal Government • But the government’s authority does not extend far beyond the capital, Mogadishu. 5 / 12 Backed by no reserves • Why are Somali shillings, issued in the name of a government that ceased to exist long ago and backed by no reserves of any kind, still in use? 6 / 12 Supply xed • One reason may be that the supply of shillings has remained fairly xed • The lack of an ocial printing press able to expand the money supply has the pre-1992 shilling a certain cachet (prestige) 7 / 12 Fakes • What about fakes? • Abdirashid Duale, boss of the largest network of banks in Somalia, says that his sta are trained to distinguish good fakes from the real thing before exchanging them for dollars 8 / 12 Money is useful • A second reason for the shilling’s longevity is that it is too useful to do away with • Large transactions, such as the purchase of a house, a car, or even livestock are dollarised.
    [Show full text]
  • Somalia Economic Update, Fourth Edition: Building Education to Boost Human Capital
    Federal Republic of Somalia SOMALIA ECONOMIC UPDATE August 2019 | Edition No. 4 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Building Education to Public Disclosure Authorized Boost Human Capital Federal Republic of Somalia SOMALIA ECONOMIC UPDATE Building Education to Boost Human Capital August, 2019 AFRICA © 2019 The World Bank 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved This work is a product of the staff of The World Bank. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this work is subject to copyright. Because the World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Attribution—Please cite the work as follows: “World Bank. 2019. Somalia Economic Update, Fourth Edition: Building Education to Boost Human Capital. © World Bank.” All queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: [email protected].
    [Show full text]
  • Market Food Security and Nutrition Analysis Unit - Somalia
    Market Food Security and Nutrition Analysis Unit - Somalia Monthly Market Data Analysis, October 2011 Highlights The monthly Consumer Price Index (CPI) decelerated slightly (3%) in the month of October 2011 in central Somalia while remaining stable in all other zones. Yearly comparison !( DJIBOUTI Zeilac !( indicates a15-41 percent increase increase in inflation this year throughout the country. Bossaso !( Erigabo Compared to the base period (March 2007), the current cost of living is significantly Awdal Sanag Bari inflated in the Somali Shilling (SoSh) areas of the country, while it is moderately elevated Borama!( Woq. Galbeed !( Burao Tog-Wajaale !( !( (23%) in Somaliland Shilling (SlSh) areas. Namely, the CPI is higher than the base year Hargeisa Togdheer Sool by 200-204 percent in South-Central and 159 percent in the North, SoSh areas. Lasanod Garowe !( !( Nugal Exchange rates between the USD and SoSh and SlSh indicate appreciation of the local currencies in most markets of Somalia in October when compared to the previous month Galkayo and the same month last year. Noteworthy, the level of appreciation was particularly high !( Abudwaq !( in Mogadishu where the SoSh gained 10 percent against the USD. This trend could be Mudug Dusa Mareb attributable to increased dollar inflows through humanitarian interventions as well as !( Galgadud livestock exports duringthe Hajj period. El Barde !( Belet Weyne !( !( Haradhere Bakol Dolo Local grain prices (maize and red sorghum) declined only moderately in October 2011 !( !( Hudur Hiran Aden Yabal !( !( !( !( El Der Luuq in most markets in the South, including Juba (9%), Banadir (11%), and Lower Shabelle Belet Xawo Gedo Baidoa (16%), following substantial declines recorded in the previous month.
    [Show full text]
  • Using Satellite Imagery to Track the Developmental Effects of Somali Piracy
    Africa Programme Paper: AFP PP 2012/01 Treasure Mapped: Using Satellite Imagery to Track the Developmental Effects of Somali Piracy Dr Anja Shortland Brunel University January 2012 The views expressed in this document are the sole responsibility of the author(s) and do not necessarily reflect the view of Chatham House, its staff, associates or Council. Chatham House is independent and owes no allegiance to any government or to any political body. It does not take institutional positions on policy issues. This document is issued on the understanding that if any extract is used, the author(s)/ speaker(s) and Chatham House should be credited, preferably with the date of the publication or details of the event. Where this document refers to or reports statements made by speakers at an event every effort has been made to provide a fair representation of their views and opinions, but the ultimate responsibility for accuracy lies with this document’s author(s). The published text of speeches and presentations may differ from delivery. Programme Paper: Treasure Mapped SUMMARY POINTS There are increasing pressures to develop land-based approaches to Somali piracy. By making use of non-traditional data sources including local market data and satellite images, this paper is intended to be an objective analysis of who benefits from pirate ransoms. Significant amounts of ransom monies are spent within Somalia, but conspicuous consumption appears to be limited by social norms dictating resource-sharing. Around a third of pirate ransoms are converted into Somali shillings, benefiting casual labour and pastoralists in Puntland. Data analysis is complemented by examination of satellite imagery to establish where the beneficiaries are located.
    [Show full text]
  • Somalia Economic Update
    Federal Republic of Somalia SOMALIA ECONOMIC UPDATE August 2018 | Edition No. 3 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Rapid Growth in Mobile Money: Public Disclosure Authorized Stability or Vulnerability? Federal Republic of Somalia SOMALIA ECONOMIC UPDATE RAPID GROWTH IN MOBILE MONEY: STABILITY OR VULNERABILITY? August, 2018 MACROECONOMICS, TRADE & INVESTMENT AFRICA TABLE OF CONTENTS ACKNOWLEDGEMents ....................................................................................................................... ii FOREWORD .......................................................................................................................................... iii ARAR .................................................................................................................................................... iv EXecUTIVE SUMMARY ......................................................................................................................... v NUXURKA SOO KoobIDDA .................................................................................................................. x PART I. Recent Economic Developments .................................................................................................... 2 1.1 Growth is recovering modestly—but it has not dented poverty .................................................. 2 1.2 Real GDP growth weakened in 2017 ............................................................................................. 2 1.3
    [Show full text]
  • 2020 Somalia Humanitarian Needs Overview
    HUMANITARIAN HUMANITARIAN PROGRAMME CYCLE 2020 NEEDS OVERVIEW ISSUED DECEMBER 2019 SOMALIA 1 HUMANITARIAN NEEDS OVERVIEW 2020 About Get the latest updates This document is consolidated by OCHA on behalf of the Humanitarian Country OCHA coordinates humanitarian action to ensure Team and partners. It provides a shared understanding of the crisis, including the crisis-affected people receive the assistance and protection they need. It works to overcome obstacles most pressing humanitarian need and the estimated number of people who need that impede humanitarian assistance from reaching assistance. It represents a consolidated evidence base and helps inform joint people affected by crises, and provides leadership in strategic response planning. mobilizing assistance and resources on behalf of the The designations employed and the presentation of material in the report do not humanitarian system. imply the expression of any opinion whatsoever on the part of the Secretariat of the www.unocha.org/somalia United Nations concerning the legal status of any country, territory, city or area or of twitter.com/OCHA_SOM its authorities, or concerning the delimitation of its frontiers or boundaries. PHOTO ON COVER Photo: WHO/Fozia Bahati Humanitarian Response aims to be the central website for Information Management tools and services, enabling information exchange between clusters and IASC members operating within a protracted or sudden onset crisis. www.humanitarianresponse.info/en/ operations/somalia Humanitarian InSight supports decision-makers by giving them access to key humanitarian data. It provides the latest verified information on needs and delivery of the humanitarian response as well as financial contributions. www.hum-insight.info/plan/667 The Financial Tracking Service (FTS) is the primary provider of continuously updated data on global humanitarian funding, and is a major contributor to strategic decision making by highlighting gaps and priorities, thus contributing to effective, efficient and principled humanitarian assistance.
    [Show full text]
  • Treasure Mapped: Using Satellite Imagery to Track the Developmental Effects of Somali Piracy
    Meeting Summary Treasure Mapped: Using Satellite Imagery to Track the Developmental Effects of Somali Piracy Dr Anja Shortland Senior Lecturer, Brunel University Chair: David Stephen Former Representative of the UN Secretary-General for Somalia 12 January 2012 The views expressed in this document are the sole responsibility of the author(s) and do not necessarily reflect the view of Chatham House, its staff, associates or Council. Chatham House is independent and owes no allegiance to any government or to any political body. It does not take institutional positions on policy issues. This document is issued on the understanding that if any extract is used, the author(s)/ speaker(s) and Chatham House should be credited, preferably with the date of the publication or details of the event. Where this document refers to or reports statements made by speakers at an event every effort has been made to provide a fair representation of their views and opinions, but the ultimate responsibility for accuracy lies with this document’s author(s). The published text of speeches and presentations may differ from delivery. Event summary: Treasure Mapped Introduction This research seeks to understand the on-land impacts of piracy in order to suggest approaches to a land-based solution to Somali piracy. Two key questions arose in approaching this research. Firstly, how big is the pro-pirate interest group? Answers to this question range from ‘pro-piracy’ claims that it creates employment and investment (influenced by the Somali culture of sharing wealth along family and clan lines) to the ‘anti-piracy’ views that it causes inflation in the local economy, brings little benefit to coastal towns, and disrupts shipping internationally.
    [Show full text]
  • Somalia: Illicit Economies, Criminal Networks and the Downfall of the Somali State
    SOMALIA: ILLICIT ECONOMIES, CRIMINAL NETWORKS AND THE DOWNFALL OF THE SOMALI STATE A Thesis submitted to the Faculty of the Graduate School of Arts and Sciences of Georgetown University in partial fulfillment of the requirements for the degree of Master of Arts in Security Studies By Spencer Hugh Brooks, B.A. Washington, DC November 19, 2010 Copyright 2010 by Spencer Hugh Brooks All Rights Reserved ii TABLE OF CONTENTS Title Page ........................................................................................................................................ i Copyright ....................................................................................................................................... ii Table of Contents........................................................................................................................... iii Introduction .................................................................................................................................... 1 Map of Somalia ………………………………………………………………………………...... 2 Background and Contextual History .............................................................................................. 3 Somali Socio-Political History and Attitudes................................................................................. 4 The Importance of Clan Structure .................................................................................................. 8 State Collapse and the Rise of Violence, Why Illicit Economies? .............................................
    [Show full text]
  • Overcoming Challenges in an Unrecognized Economy: Experience from Somaliland
    American International Journal of Contemporary Research Vol. 7, No. 1; March 2017 Overcoming Challenges in an Unrecognized Economy: Experience from Somaliland Muktar Adan A. (Koshin) A Researcher, Currently enrolled a Postgraduate Program School of Business University of Nairobi Kenya Abstract The crumble of the great Somali Democratic Republic does not designate to Somalis that they lost their precious nation. The formidable pride of the Somali nomad, his extraordinary sense of superiority as an individual, and his firm conviction that he is the sole master of his actions and subject to no authority except that of God. But it’s a loss of all the national institutions and the hierarchy of governance, a loss of the brilliant Somali culture, academics, professional personnel, the proudness and patriotism the dignity and all sorts of humanity This study analyses the economic meltdowns that hampered Somaliland. In 1991 all state institutions that provided and regulated financial services, including the central bank and the entire banking system collapsed, the collapse of the commercial banks in the 1990s and the loss of depositor’s money, eroded public confidence in government and banks. The former British Somaliland protectorate (now the Republic of Somaliland) got its independence on 26th June 1960 and after four days united with southern Somalis’ which was colonized by Italy and that was the beginning of three good decades of anarchy, chaos and mayhem which was confronted by the northern Somali’s who had united with their southern brothers. This dishonesty led the northern Somali’s to withdraw from the unionon May 1991, which led to the rebirth of the Republic of Somaliland.
    [Show full text]
  • SOMALIA-SCD-08152018.Pdf
    A Document of The World Bank Group Public Disclosure Authorized FOR OFFICIAL USE ONLY Report No. 123807-SO FEDERAL REPUBLIC OF SOMALIA SYSTEMATIC COUNTRY DIAGNOSTIC Public Disclosure Authorized May 1, 2018 Public Disclosure Authorized Public Disclosure Authorized i SOMALIA – GOVERNMENT FISCAL YEAR January 1 – December 31 CURRENCY EQUIVALENTS (Exchange Rate Effective as of April 1, 2018) Currency Unit: = Somali Shillings (SOS) US$1.00 = TZS 577 Abbreviations and Acronyms AfDB African Development Bank AMISOM African Union Mission in Somalia AML Anti-Money Laundering AS Al Shabaab ASWL Association of Somalia Women Lawyers CAMEL Capital, Assets, Management, Earnings, Liquidity CBS Central Bank of Somalia CFT Combating the Financing of Terrorism COGWO Coalition of Grassroot Women’s Organizations DFID Department for International Development DG District Government EEZ Exclusive Economic Zone FAO Food and Agriculture Organization FATF Financial Action Task Force FGC Financial Governance Committee GCC Gulf Cooperation Council GBV Gender-based violence GBVIMS GBV Information Management System GDP Gross Domestic Product HH Household ICT Information and communication technology IDA International Development Association IDLO International Development Law Organization IDP Internally displaced people IGAD Inter-Governmental Authority on Development IMF International Monetary Fund INDC Intended Nationally Determined Contribution INPB Interim National Procurement Board IPCC Intergovernmental Panel on Climate Change's IPV Intimate partner violence IRC
    [Show full text]
  • The Devastating Local Currency and the Unofficial Dollarization in Somalia Ahmed Nuh YUSUF, Abdurrahman OKUR1 Article Info Abstract
    Fiscaoeconomia 2019, Vol.3(3) 42-57 DOI:10.25295/fsecon.2019.03.003 The Devastating Local Currency and the Unofficial Dollarization in Somalia Ahmed Nuh YUSUF, Abdurrahman OKUR1 Article Info Abstract Article History: Currency devaluation and prevalent unofficial dollarization in Somalia inspired Date Submitted: 25.06.2019 the volatility of exchange rate. U.S dollar has become a good choice to store the Date Accepted: 25.08.2019 value to prevent the volatility of the Somali Shilling and its frequent devaluation. Jel Classification Almost all price tags of products and services are charged in dollar form including F31, E42, E58 the salaries of public and private employees, taxes collected by the central government and FMS, rentals and school fees. Commercial banks deposit, lend Keywords: Dollarization clients and charge bank fees solely in USD. The only remaining one denominator Exchange rate volatility, of the Somali Shilling in the markets is heavy to carry, old and damaged to be in Currency devaluation, Somali Shilling circulation and susceptible to be faked. The study employed time series analysis to investigate the volatility of the exchange rate and its relationship with the dollarization using daily nominal exchange rate data for the study period 2009– 2018. Empirical results indicate that the exchange rate regime has no major consequence in promoting dollarization. Introducing new domestic currency is deemed very necessary, but considering the challenges faced by the weak central authority, such initiative is hard to be achieved in the near future. 1. Introduction Dollarization is the use of other people’s money in another people’s economy, officially or unofficially.
    [Show full text]
  • Joint Market and Supply Chain Update 6Th December — 13Th December, 2020
    Joint Market and Supply Chain Update 6th December — 13th December, 2020. Key messages Effects of devaluation of Somali Shillings continue in the main markets of Punt- land, the local currency slightly improved but is fragile. In Galkayo, prices of fruits and vegetables such as tomatoes, onions, and water- melons are fluctuating due to delays in the main corridor linking Galkayo and Beletweyne. In South West, prices of essential food items remain high in most markets and availability is very low. Banadir and Hirshabelle Galmuduug • Deyr rains subsided and stagnant water on the main • In Dhuusamarreeb and Guriel, prices of imported food road linking Balcad and Jowhar are reducing and acces- items are increasing due to effects of the devaluation sibility of the road and transport services are likely to of local currency (Somali Shilling) in upstream market resume as from next week. However, there is a short- of Bossaso. For instance 50 Kg of wheat flour increased age of imported food commodities such as sugar and from $27 to $28 (4%) and vegetable oil (3 litres) in- vegetable oil in Jowhar market and wheat flour in- creased from $3.5 to $4.0 (14%). creased by 6%. • In Galkayo, prices of fruits and vegetables are fluctuat- • There is an increase in the number of checkpoints ing due to delays in the main corridor linking along Bosasso Beletweyne corridor due to the unrest Beletweyne. potatoes decreased by (-14%) compared situation in Hiraan region. This has led to an increase in to last week due to arrival of new supplies. Tomatoes the price of commodities as transporters are subjected prices are fluctuating between $1.2 and $1.4 per Kg.
    [Show full text]