the effect of dollarization on small businesses in Somalia
After the collapse of the central government of Somalia in 1991, fallowed by immediate civil war breakout. the country is still suffering from the consequences of the war in present day after almost three decades, one of the severest consequences in the aftermath of the war is the collapse of central bank of Somalia(CBS) since then the country dramatically adopted dollarization, that in today the exchange rate of Somali shilling(ssh) against the US dollar is 25000ssh, and there is only one remaining item of the shilling out of seven denominations it used to be in the early days, and only small payments is used for the shilling today. back in the day, the idea of adopting the dollar as a medium of exchange come out for mainly two reasons, firstly, the confidence of the people on local currency was destroyed due to the vulnerability of the shilling to be forged easily because the lack of regulatory body(central bank) to administer the supply and the demand for money, secondly, the shi...