New notes cause financial chaos

Business in the Bakara Market, Mogadishu's main market has been at a standstill for three days, in protest over the importation of fake currency notes. Traders in the market closed their doors on Thursday, after two planes carrying currency arrived at Balidogle airport on Wednesday, 7 February, business sources in Mogadishu told IRIN.

Arrival of the notes, reportedly printed in Malaysia by Somali businessmen, caused serious fluctuations in the exchange market. A Somali economist in Mogadishu told IRIN that the impact of the currency led to the price of food and essential goods to almost double in price.

Before the arrival of the new notes, the Somali shilling was exchanging 12,000 to US $1, but is now at 15,200 to US $1, Mogadishu sources said. A demonstration was held near Bakara market on Thursday, and residents stoned businessmen suspected to be linked to the importation of the money, the economist said. "Traders are now only accepting (US) dollars only for their goods", he said. The hardest hit were low income families and the large number of displaced people in the capital, the economist told IRIN.