Somaliland:Grave impacts on economy by money laundering

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money-laundering111By Mohamed Ahmed

The use of a monetary unit in any essence that borders forgery is definitely one that is tailored for the purpose of pilferage; money laundering in all practicalities and technicalities.

All monetary forgeries and launderings are thus NOT legal tender in all senses, hence ranges in a variety of forms, the latest being the “electronic cash” or what is locally termed as “mobile money”.

This is indeed and purely the transitive actual means of flowing un-accounted for monies, regardless of its accrued manner, hence illegally passed on through the market in un-observed yet ‘legitimate disguise’, freely!

The history of the forging of mint money (whether paper or coins) dates back to its introduction when assorted silver and golden coins were in use.

Compounds that were smelted and/or smoldered hence mixed together with others to forge the gold and precious silver coins cut across copper, brass, aluminums, zinc, lead, tin and iron.

Impact of forgery on economy:

The major impact on the use of such monetary units whose currencies have no proper and secure guarantees (or guarantors for that matter) e.g. those of the “mobile money” in question automatically sets in spiraling costs of living and severe inflation in any given national economy.

(Thus, their flow through our bourses sail, fluctuate and are manipulated freely at the detriment of a population thus they are neither regulated nor checked).

Once the national economies, devaluation expressly takes over hence the value of a country’s national currency sharply plummets.

The rampant use of such un-regulated monetary units not only depletes the economy but scrubs away the national trust of and in their own Legal Tender (country’s official currency), curtailing its use.

When large amounts of such laundered monies are injected into the market, it worsens the case, given that the regulatory institutions charged with the task are incapacitated by the promiscuous lack of the modalities whose apparatus are applicable to putting the crooked flows in check.

Such trends of such monies being injected into the market drives higher and incongruously the supply and demand graphs of both goods and services rendered.

A self-defeating result therefore occurs since a depleted economy (or population) can not compete with the supply and demand incongruent curves such that the supply is naturally short-circuited.

Similarly, the basic prices and costs takes heed and skyrockets several folds.

Thus how inflation sets in depleting the pockets of a country and her people as a whole.

This is exactly what happens in Somaliland; and (when such amounts enter illegally into the mainstream market daily, the central bank has no treasury bonds to float such that it may control and curb the excesses so as to keep a stable economy).

What abets this use of such massive laundering are the absence of legal regulations in place, since internal and hence external tracking modalities, are similarly technically rendered untenable and impossible.

Moreover, when the supply cannot meet the demand because of depleted economies of a country and her people, illegal laundering of merchandize generally dubbed “black-marketeering” becomes the factual daily norm.

Those with the purchasing power then remain the only handfuls that have such capabilities of living decently.

These handful of tycoons pay five-fold for the black-marketed items; it can thus be envisioned how the poor folks drown in ponds of pauper-hood, living from hand to mouth, let alone health pursuits o other basic socio-economical needs.

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