Both the Somali and Somaliland Shillings were stable in most markets (around SoSh 14,000 per dollar and SlSh 6,300 per dollar, respectively), for the last six months (July to December 2006). However, the Somali Shilling appreciated or gained slightly in value against the US dollar by 4%, (14,000 to 13,400 SoSh per US dollar) for the period of September to December 2006 in most southern markets. Nonetheless, the value of both currencies is still significantly lower than pre-livestock ban levels.
Trend in Exchange Rates SOSH and SLSH To US$ (1998-2006)
Imported commodity prices such as sugar, rice, edible oil and petrol, are high in most of the main inland markets in southern regions compared to 2003 and have risen steadily during this period. The increase of imported commodity prices in the southern regions is attributed to a number of factors, including increased fuel prices that raised not only shipping costs but also transportation costs, high numbers of ‘taxed’ road blocks, and disruptions to inter regional trade flows. The price increase is transferred to the consumers through higher commodity prices.
The current closure of the Kenya Somalia border (on 3rd January 2007) due to insecurity not only restricts the movement of the pastoral community in these border areas, it has also had an impact on the important cross-border cattle trade in the Garissa market catchment. This will have an impact on local market prices and commodity flows and will be important to monitor over the coming few months.
Juba Valley: Trend in Imported Commodity Prices Compared to Exchange rate
Central: Trend in Imported Commodity Prices Compared to Exchange Rate
