Somalia
Somalia govt to mint new currency, parliament demands approval
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May 3, 2009 - 12:30:45 PM

MOGADISHU, Somalia May 3 (Garowe Online) - Somalia's interim government has inked an agreement with the government of Sudan to mint new Somali Shillings, but a parliamentary leader has warned the government to bring a motion to parliament first, Radio Garowe reports.

Sudanese media reported Sunday that the Government of National Unity in Somalia has agreed with the Sudanese government to mint the new Somali Shillings.

Somali Finance Minister Sharif Hassan Sheikh Aden and his Sudanese counterpart, Mr. Awad Ahmed Jazz, signed the agreement in the Sudanese capital Khartoum last month, according to Sudan media reports.

The Somali Shilling has been severely devalued since the outbreak of the civil war in 1991. Currently, only the 500-Shilling and 1000-Shilling note is accepted at markets across the country.

Some reports said the new minted currency will include Shilling notes that are lesser than the 500-Shilling note.

Rejection

The deputy Speaker of Somalia's parliament, Osman Elmi Boqorre, told reporters in the capital Mogadishu that the government cannot mint new currency without parliamentary approval.

"Nothing can be legal unless it is passed by the parliament," he said, adding that the Somali government must first submit a bill in parliament before it can enter agreements to print new currency.

Deputy Speaker Boqorre warned that the new currency might worsen the current state of the economy, which has been devastated by hyperinflation in recent months.

The Somali interim government came to power in January after President Sheikh Sharif Ahmed won a parliamentary vote in the neighboring Republic of Djibouti at the conclusion of UN-backed peace talks.

The government is currently based in Mogadishu, where Islamist factions opposed to the new government have demanded the withdrawal of African Union peacekeepers (AMISOM).

President Sheikh Sharif's government is the 15th attempt to restore national order since the civil war erupted in 1991.

Source: Garowe Online