Somalia currency crisis might push Puntland to print its own
Posted: Sat Aug 03, 2013 2:05 pm
President Farole described the currency situation in the country, explaining that the Somali Shilling to U.S. dollar exchange rate changed and that has impacted the Government’s ability to pay salaries and government expenses on time.
“A nine-member Committee consisting of three Cabinet ministers, along with business people and academics, was appointed to find a solution for the currency crisis. The Committee decided that the Puntland Government should base payment of salaries and expenses on the U.S. dollar, whilst ensuring the continued use of Somali Shilling banknotes,” the President said.
“This currency crisis is a common problem throughout Somalia. For example, the Somali Federal Government in Mogadishu has based its entire budget on the U.S. dollar. The Federal Government-Puntland Agreement of March 11, 2013, called on the Federal Government to print new Somali Shilling banknotes, so the country can recover from this currency crisis. It has now been over five months and half without any action from the Federal Government, and so Puntland will engage in consultations on what steps to take next, because we cannot continue in this present situation,” President Farole warned.
“A nine-member Committee consisting of three Cabinet ministers, along with business people and academics, was appointed to find a solution for the currency crisis. The Committee decided that the Puntland Government should base payment of salaries and expenses on the U.S. dollar, whilst ensuring the continued use of Somali Shilling banknotes,” the President said.
“This currency crisis is a common problem throughout Somalia. For example, the Somali Federal Government in Mogadishu has based its entire budget on the U.S. dollar. The Federal Government-Puntland Agreement of March 11, 2013, called on the Federal Government to print new Somali Shilling banknotes, so the country can recover from this currency crisis. It has now been over five months and half without any action from the Federal Government, and so Puntland will engage in consultations on what steps to take next, because we cannot continue in this present situation,” President Farole warned.
