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Markets closed as inflation soars in Puntland

By   /  May 8, 2016  /  No Comments

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Hundreds of small scale traders have closed their businesses in Puntland’in protest of the crippling economic effects by the recent importation of a new currency which saw the Somali shilling stumbled against the US dollar.

The striking traders in Garowe, the provincial capital of the north-eastern Somalia region have complained of the galloping inflation which they said left their businesses struggling, thanks to the decline in sales of commodities in the volatile economic situation.

Markets largely remained closed on Saturday, with striking traders expressed concerns over the future of their businesses.

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Local officials said that the new inflation drove food prices to the highest levels recorded in years, adding pressure to lives of many in the impoverished horn of Africa nation. Puntland officials haven’t yet commented on the development which left many poor families struggling to survive.

However, traders called for the regional authorities to take an immediate action to stimulate the region’s economic crisis.

Meanwhile, local economists said that the shilling retreated back to its lowest level this week, with $1 was exchanging at 26000 Somali shilling, in a stark contrast to the last week’s rate which was being sold at 21000 Somali shilling.

Puntland’s economy is largely dependent on the livestock, agriculture and fish from its 1600 km of coastline.

In recent years, the region had begun official negotiations with foreign oil companies over exploration rights in the area.

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