Garowe (PP News Desk) — A Puntland government committee, tasked with finding solutions to the depreciation of the Somali shilling against the dollar, has issued a set of policies aimed at enforcing the use of the Somali shilling for transactions.
The eight-point policy statement contains measures the government will introduce to stabilize the exchange rate to rein in the depreciation of the Somali shilling, which has resulted in inflation in Puntland.
The following is a Puntland Post unofficial translation of the statement from the Committee:
- Currency exchange branches will open at the government bank and private banks in Puntland.
- Government ministries, agencies and utility companies are instructed to begin the use of the Somali shilling for transactions. No citizen will be forced to use the US dollar for transactions.
- Mobile Money operators are instructed to include in their apps limited amounts of Somali shillings alongside the dollar, [the only money currency used for mobile money transfers in Puntland.]
- It is illegal to transport any other Somali shilling to Puntland via its borders.
- Puntland Government Bank will find out the amount of Somali shillings in circulation in Puntland to determine the scope of the hard currency demand.
- The government bank will prepare rules and guidelines for the currency exchange market and money changers throughout Puntland.
- Any person or business who opposes the use of the Somali shilling for business transactions will be brought to book.
- The committee will open complaint centres. In the meantime citizens should report to the police any violation of instructions from the Government.
The policy emphasises the Puntland-printed Somali shilling as the sole legal tender in Puntland, despite being worth less than the Somali shilling used in other parts of Somalia.
This article first appeared in the © Puntland Post and is republished with permission