Somali Shilling gains against the dollar in Mogadishu after the election of President Farmajo

The Somali shilling has slightly gained against the globally stronger dollar since Thursday and expected it to gain strength further.

A local money exchanger, Mohamed Osman Ahmed said the Somali shilling hit 15,000 to the dollar which is 62% rise.

Ahmed attributed the increase of Somali shillings value to huge amount of dollars that entered the market and the election results since the incoming president pledged to pay the armed forces and civil servants.

“Previously there was not enough dollars in the market, but huge amount of dollars entered the market in the past few days, thus the depreciation of the dollar,” he said.

He hoped that this might reduce the inflation in the city and affect the price of basic food.

The dollar is the major trading currency in Mogadishu market after Somali shilling lost value due to the more than two decades old conflict in the country, with most locals receiving money from the relatives abroad in form of dollars.