The Volatility Of Somalia’s Unregulated Exchange Rates

• Main Author: Ibrahim Nor, Mohamed
• Format: Thesis
• Language: English
• Published: 2015
• Subjects: HD28-70 Management. Industrial Management
• Online Access: http://eprints.usm.my/31901/1/MOHAMED_IBRAHIM_NOR.pdf; http://eprints.usm.my/31901/
• Institution: Universiti Sains Malaysia

Sistem kewangan dan mata wang negara (Shiling Somalia) dahulunya stabil dan kukuh.Walau bagaimanapun, Shilling Somalia mula merudum selepas 1980-an, dan akhirnya tersungur ke tahap yang teruk.Kerajaan pusat negara Somalia runtuh pada tahun 1990 selepas tiga dekad menikmati kestabilan ekonomi dan sosial. Berikutan kegagalan itu, mata wang tersebut terus didagangkan tanpa kawalan kerajaan. Pasaran tukaran mata wang asing tempatan pula beroperasi tanpa seliaan mana-mana pihak.Walaupun rakyat Somalia berurus niaga mata wang dalam pasaran tersebut, ia dikritik kerana tidak memiliki asas pasaran tukaran dagangan. Semasa tempoh kemunduran ini, nilai Shiling mengalami fenomena ketidakaturan yang tidak boleh dijangka, lebih-lebih lagi pada tahun 1997, 2001, 2008, dan 2011 Historically, the monetary system of Somalia was stable and its national currency (Somali Shilling) had very strong value but Somali shilling started to depreciate after 1980s and its value reached to a very low level. Somalia’s central government collapsed in 1990 following three decades of stability. Following the collapse of the government, the national currency continued to circulate without sovereign support and the country’s FX market has been operating without regulation. Though Somali people have been using this FX market, the market is criticized of not having the basic foundations of an FX market. During this period, the value of the Shilling experienced unpredictable volatility in particular in 1997, 2001, 2008, and 2011.