Mogadishu (Raxanreeb Online) — Traders based in Mogadishu have reportedly begun refusing to accept Somali Shilling in everyday transactions, choosing instead to sell goods exclusively in US dollars.

The move is said to reflect the deteriorating condition of the Somali Shilling, which has become heavily worn and has not been replaced or properly supported by the government, with the last known printing of the currency dating back to 1990.

As the country’s capital, Mogadishu now appears to be the latest city where the Somali Shilling is being increasingly rejected in the marketplace. In many other parts of Somalia, the local currency has already been pushed aside in favour of the US dollar.

The Federal Government of Somalia has yet to succeed in printing and circulating new banknotes that could help restore public confidence in a functioning national currency.

Meanwhile, in several regions across the country, traders had already informed residents that they would no longer accept payments in Somali Shilling, further deepening reliance on the US dollar in daily commerce.