Baidoa, Somalia – In Baidoa, the interim capital of Somalia’s Southwest State, the Somali shilling is steadily losing its value, stirring unease among money exchangers and small business owners who rely on daily cash transactions. What was once a predictable marketplace has become increasingly uncertain, as fluctuating exchange rates strain both traders and consumers.
Money exchangers in Baidoa’s bustling market say the decline has been slow but relentless in recent weeks.
The weakening shilling has triggered price hikes in food, fuel, and basic commodities, deepening the cost-of-living crisis in a region still recovering from drought and insecurity. Local shopkeepers report that customers are increasingly buying on credit, while some traders have begun favoring the U.S. dollar for bulk transactions, further undermining confidence in the local currency.
Economic observers in Southwest State point to several factors behind the slide — from limited circulation of new banknotes to inconsistent monetary regulation across the federal system and growing demand for foreign currency.
Community elders, business leaders, and market associations are now urging both the Southwest administration and the federal government in Mogadishu to take immediate steps to stabilize the shilling. They are calling for tighter market oversight, improved coordination with the Central Bank, and policies that restore trust in the currency.
For ordinary residents, the weakening shilling has become a daily struggle.
As Baidoa’s traders grapple with shrinking profits and rising costs, many fear that without swift government intervention, the city’s economic heart could slow to a worrying pace.