Monday, May 5, 2008

Dollarization and Inflation gone extreme

2 killed in Somalia as tens of thousands riot over food prices
In Mogadishu, the price of a kilogram (2.2 pounds) of corn meal has gone from 12 cents in January to 25 cents. Another staple, rice, has risen in that time from $26 to $47.50 for a sack of 50 kilograms (110 pounds).

Food prices also have been affected by the plummeting Somali shilling, which lost nearly half its value this year, tumbling from 17,000 shillings to about 30,000 to the U.S. dollar amid growing insecurity and a market clogged with millions of counterfeit notes printed in bulk locally.

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