Puntland President Faces Backlash for Prioritising Dollarisation Over Somali Shilling

[Deeq A.]

Mohamed Abdullahi Hussein: “President Deni bragged that his administration had phased out the use of the Somali Shilling for transactions. It is not a policy to be proud of. Many people in Puntland have lost wealth due to runaway inflation.”

Garowe (PP News Desk — The President of Puntland State of Somalia, Said Abdullahi Deni, faced criticism over his government’s decision to relegate the use of the Puntland-printed Somali Shilling to a lower status in favour of the US Dollar. Mohamed Abdullahi Hussein ‘Shortayo’, a co-founder of Runcad, a political party, said the quasi-demonetisation of the Somali Shilling in Puntland resulted in inflation and economic hardships borne by the predominantly poor population.

“People lost confidence in the use of the Somali Shilling after the Puntland State government refused to accept the local currency. No one uses the Somali Shilling in Puntland if the incumbent government no longer regards it as legal tender,” said Shortaye.

In 2019 President Deni inherited an unstable monetary policy that he allegedly exacerbated.

He added that Puntland in 2021 attempted to address the inflation caused by the widespread use of the US Dollar for transactions and the dual exchange rate, but the appointed committee of experts had not succeeded in solving the monetary problem. “President Deni bragged that his administration had phased out the use of the Somali Shilling for transactions. It is not a policy to be proud of. Many people in Puntland have lost wealth due to runaway inflation,” added Shortaye.

The Puntland administration of Dr Abdiweli Mohamed Ali (2014-2019) printed an unspecified amount of Somali Shillings. The Committee for Exchange Market Crisis, appointed in 2021 by the Puntland State government, recommended measures to investigate the possibility of illegal money printing facilities that could be contributing to the inflation.

© Puntland Post, 2024

The post Puntland President Faces Backlash for Prioritising Dollarisation Over Somali Shilling appeared first on Puntland Post.