The conference focused on the effect of dollarization on local currency in Somalia. the key findings on the effect of dollarization on local currency in Somalia encompass;

1.dollarazation creates local currency depreciation and shortages in Somalia

2. dollarization increases the rate of foreign exchange on local currency

3. it causes inflation rate.

4. it creates lack of financial control in the economy

Solution on the dollarization

I. The federal government of Somalia should introduce new regulation on monetary system

II. Introduce new reforms

III. Review business models in Somalia

An analysis of the Economic and Political factors causing currency shortages and deprecation.

Bushra business bank findings on this topic of political factors causing currency shortages and deprecation in Somalia entails;

I. Higher current account deficit of Somalia compared with its trading partners leading to high foreign currency inflow and hence weaking Somali shillings

II. Unhealthy economy characterized by high unemployment rate leading to currency shortages and deprecation

III. Political instability which is causing uncertainty and fear among investors and resulting into currency and weak regulation control by government.

IV. Higher public debt which is outpacing economic growth and driving up inflation rate.

Solution on the political factors causing currency shortages and deprecation.

I. The government of Somalia should monitor and supervise thoroughly the macro-economic elements in the country

II. The government should introduce policy reform in order to overcome currency shortages and depreciation.

III. The government should introduce effective monetary policy in order to control supply and use of money in the economy

IV. The government should spend more on investment in order to improve its economic growth and increase its export rate to stabilize the currency value.

The influence of E-Money on currency. shortages and depreciation in Somalia

The aim of this discussion was to examine the influence of E-money on Somali shillings.

The key finding of discussion was the following;

I. E-money technology lacks security leading to shortages and depreciation.

II. E-money creates exchange rate instability since it transfers and receives money into the country using powerful foreign currencies such as dollar that decrease the value of the local currency.

III. E-money decreases ability to supervise, monitor and control country’s currency leading to currency shortages and depreciation

IV. E-money in Somalia has got limited expansion and coverage creating currency shortages.