Thursday, October 21, 2010

Islamists ban cash transfers back to Somalia

The Islamic insurgent group that controls much of southern Somalia has banned remittances and mobile money transfers, threatening the foundations of the economy.
Al-Shabaab said these services were contrary to Muslim teachings and threatened “traditional Islamic banking methods”.

Foreign remittances are estimated to bring about $1.6bn into Somalia every year. About 1m Somalis live abroad and the funds they send home are crucial to many livelihoods.
Mark Bowden, the UN’s humanitarian co-ordinator for Somalia, said: “Diaspora remittances provide a vital lifeline to millions of Somalis who depend upon them for day to day subsistence.”
For more
http://www.ft.com/cms/s/0/31374914-dd2b-11df-9236-00144feabdc0.html

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