In a statement on tackling the inflation, the Puntland Government resolved to regulate electronic money transfers via Sahal and E-Dahab.
“In response to complaints about the exchange rate in Puntland, from December 5th, 2020, any transactions (valued at) less than US$1 will not be used for money transfer wallets such as Sahal and E-Dahab” reads the statement.
The Puntland Government (also) instructed local governments across Puntland to accept the Somali shilling for transactions. “The use of the Somali shilling has not been banned in Puntland” the statement added.
On Tuesday, the Puntland Government issued a decree on the sole use of US dollars for collecting import and export duties.
Businesses in Puntland switched to the use of the US dollars immediately, for all transactions, due to a higher exchange rate of the greenback against the Puntland-printed Somali shillings.
Economists believe the belated, light-hearted regulation on the money transfer wallets will have a negligible impact in helping to rein in the current inflation seen across Puntland.
This article first appeared in the © Puntland Post, 2020 and is republished with permission.