THE EFFECT OF DOLLARIZATION ON DEVELOPING ECONOMIES: LESSONS FROM SOMALIA’S INFORMAL MARKET
Journal Title: Academic Research International - Year 2012, Vol 2, Issue 3
Abstract
Arguments on dollarization and its effect on the economy have been published mainly on economics and financial journals, yet, little is known about Somalia’s unofficial dollarization. To contribute in that matter, this paper presents the effect of dollarization on Somali economy. The study is carried out using literature analysis. The study found out that dollarizing Somali economy brings severe economic turmoil including an absolute failure to achieve price stability in the local market. In addition, adopting this policy impedes achieving strong financial management system in the country. The study recommends that policymakers and business community should try to lessen the reliance on US dollar and encourage the use of a basket of currencies (in the short-run) while strengthening the use of local currency (in the long-run). Adopting such strategy will facilitate to avoid recurrent financial crisis which might happen if the use of US dollar as an internal currency is collapsed.
Authors and Affiliations
Mohamed Nor
Keywords
Related Articles
- EP ID EP161351
- DOI -
- Views 92
- Downloads 0
ROUGH ESTIMATION OF MATERIALS QUANTITIES FOR CONSTRUCTION OF HARBORS
In this paper an analytical model is proposed to estimate roughly the materials required for construction of breakwaters of harbors. The proposed model is applicable for the harbors having the square-shape plan basin and...
ANALYSIS OF PHYSICAL FITNESS OF FEMALE UNDERGRADUATE STUDENTS OF EDUCATION MANAGEMENT, UNIVERSITY OF PORT HARCOURT
The primary focus of this paper is to present participation in sports and exercise as a prerequisitefor enhancing the physiological and socio-psychological fitness of female students. In other toachieve this aim, t...
GLOBAL WARMING AND CHALLENGES OF FLOODS IN LAGOS METROPOLIS, NIGERIA
Global warming and extreme weather events have caused havoc to lives and property in recent years. Research and development, workshops, conferences, seminars and others have also been focused on these global phenomena....
INCOME AND ECONOMIES OF SCALE EFFECT ON HOUSEHOLD FOOD DEMAND PATTERN IN PAKISTAN USING PSLM DATA
The study evaluates the household food demand patters for various income groups in Pakistan namely: The Lower Income Group(≤ 5000), Lower-middle Income Group(5001-10000), Middle Income Group(10001-15000), Upper-middle In...
Male Prostitution in Larkana City: An Unrevealed Truth
Like other professions, prostitution is a profession for providing sexual pleasure to their clients for the sake of money. This profession is increasing all over the world. Male prostitution is an unrevealed truth of tra...