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This article ignores the fact that no one in Somalia uses the shilling any more^. In fact no one really uses money any more. Most banking and financial transact
by cup 9y ago
This article ignores the fact that no one in Somalia uses the shilling any more^. In fact no one really uses money any more. Most banking and financial transactions are done using mobile credit, similar to Kenyas M-PESA.
This has significant advantages for Somalis. Mohamed in Mogadisho can ask his cousin Mohamed in Minnesota to pay for his meal and all Minnesota Mohamed has to do is transfer the money on his phone.
Why would Somalis go back to the shilling? If anything they'll just go back to the USD which has been the staple far longer than anything else.
^Ok I'm being excessive. It is in use but its use is made redundant by access to mobile technology. Those at the poorer end of society still depend on the shilling but even the nomadic pasturalists these days have mobiles and conduct their trade using mobile money.
Edit: One has to wonder if the new TFG in Somalia is re-introducing bank notes to try to damage the hold that the big Telcos have on Somalias financial institution. Considering some of the Telcos are in bed with Al Shabab It's probably in their interest to curtail their power.
- dmoy 9y agoI think the article is in violent agreement with you (at least the latter half of it). It in fact argues just that - they shouldn't go back to the shilling, precisely because nobody uses it (and instead they should go dollar/mobile/etc).
- cup 9y agoOh you're right. Strange that the full page didn't load on my phone. My mistake, thanks for pointing that out.
- an_account 9y agoI'm sure you read this as well after it loaded, but the article does mention that in urban areas most payments are mobile. It's the rural areas using conferfeits.