Thousands riot in Somali capital

Hundreds of shops and restaurants closed after thousands of Somalis took to the streets [AFP]

Thousands of Somalis have protested in the capital, Mogadishu, burning tyres and hurling stones at shopkeepers amid record-high inflation and rising food prices.   The violence started on Monday after traders refused to take devalued Somali shillings - a measure they say is meant to counter fake notes that have flooded the market.

However, up to 7,000 protesters accused the traders of pushing inflation to its highest level in at least 17 years by refusing to accept the old currency and favouring US dollars. 

  Witnesses said several people were injured in the protests, while AP news agency reported two people killed.

Cars and buses were damaged, and hundreds of shops and restaurants in the city closed their doors from fear of looters.  

Record inflation

  Although there are no official inflation figures, UN monitors say cereal prices have increased by between 110 and 375 per cent in the past year as central Somalia has endured its worst drought in recent memory.   Currently, the Somali shilling is valued at roughly 34,000 to $1 - more than double what it was a year ago.   The problem has been compounded by sharply rising world food prices and the UN has warned of a looming famine in the country.   Somalia has been without any kind of real government since Mohamed Siad Barre, the former ruler, was ousted from power in 1991 by subordinates who then tried to carve up the country among themselves

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