Somalia Shilling Remains Stable Against the U.S. Dollar As Price of Food Items Rise Slightly

October 24, 2019 (AO) – exchange rates between Somali Shilling and the US Dollar remained relatively stable in most regions of the country in September 2019. Compared to the five-year average, SoSh exhibited a moderate to significant depreciation in all regions of the country with the highest depreciation reported in the northeast mainly due to increased injection of newly printed local currency into over the past two years.

Somali Shilling using areas: local currency in Somaliland Shilling using areas exhibited relative stability against USD in September 2019 but as well as in comparison to the five-year average.

Local cereal (white maize, red sorghum and white sorghum) prices either remained relatively stable or exhibited mild monthly increases in September 2019 in most parts of the country. The mild increases are due to dwindling supply as a result of the poor 2019 Gu season cereal harvest and limited carryover stocks from previous seasons.

Compared to the five-year average, September 2019 local cereal prices are higher (5-24%) in all the regions across the country.

The Prices of imported food (rice, sugar, vegetable oil, wheat flour) mostly exhibited relative stability or mild monthly changes in local currency terms in September 2019 in most Southern regions of Somalia compared to both last month and the five-year averages. In the northern parts of the country, the prices of most food imports remained relatively stable from last month but exhibited mild to moderate increases (3-17%) compared to the five-year average.

The Livestock prices for local quality goat and camel mostly exhibited mild to moderate (<8%) monthly declines in the southern regions due to reduced demand following the end of the Hajj festive period and seasonal deterioration of livestock body condition during Hagaa. Relative price stability to mild monthly changes (+/-4%) in livestock prices were recorded in northern regions in September 2019. Compared to the five-year average, livestock prices exhibited mild to moderate increases (5-19%) across the country. Milk prices (camel and cattle) exhibited mild increases (+/- less than 10%) in most regions of the country both in September 2019 and compared to the five-year average.