Currency In Somalia Essay

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SOMALIA CURRNCY VULNERABILITY AND THE APPEARANCE OF DOLLARIZATION SOMALIA CURRENCY HISTORY AND MONETARY SYSTEM There is no definite time that can be traced the starting of use of money in Somalia, but its told that in early time barter trade had been using by the society of East Africa. But in the first half of 19th century the people started using a silver metallic coins called Maria Theresa Thaler, given as honor the name of Empress Maria Theresa who ruled Austria, Hungry and Bohemia. These coins are accepted by the residents of Arab World and East Africa. At the same time two currencies namely; Indian Rupee made of silver and Pesa made of copper were also circulating in the economy of Zanzibar, Mombasa, Muscat, India and Iran which were at that time the main trade partners of Somalia. Indian Rupees mostly used in the coastal towns of Somalia namely; Zeila’, Berbera, Mogadishu, Merca, Brava and Kisimayo (Central Bank of Somalia). In the northern regions of Somalia, the British colonial officially recognized the Indian Rupees as the only medium of exchange for its previous acceptance among the society and the same currency itself is issued by the British…show more content…
In 1950 the United Nations Trusteeship Administration’s decree no stated the need for issuance of new currency for Somalia named Somalo which equals to 0.124 grams of fine gold. This new currency was useful until early of sixties (Central Bank of Somalia). In 1962 Banco Nazionale Somalia or National Bank of Somalia is established and started to provide the economic and financial service to the nation. New banknotes called Somalia Shilling were issued in December 1962, this money contained 100 Shilling, 20 Shilling, 10 Shilling and 5 Shilling (Luther &

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