Somalia: Puntland Business community concerned over new banknotes printing

BOSSASO, Somalia Feb 7, 2015 (Garowe Online)-Businessmen and women in the Gulf of Aden port city of Bossaso have voiced concern over the printing of new Somali shilling currency, Garowe Online reports.

Some Puntland business community members who declined to be named in print said, the installation of new note printing plant in the premises of finance ministry could negatively impact the local economy and financial activities of businesses.

As US dollars continue to appreciate against Somali shilling, local traders are being blamed for deliberately hoarding the Somali banknotes.

As a result of week-long meetings in Puntland’s busiest commercial city, Bossaso, business community members agreed to discuss their concerns with President Abdiweli Mohamed Ali.

Exchange rates in local markets sharply increased on Saturday, affecting business transactions and prompting public outcry.

Islamic scholars previously warned the government of setting up note printing plants, a move they said would lead to relapse into the state’s worst currency crisis in 2007.

Puntland lawmakers in federal parliament are said to have scolded President Ali, who is now on visit to Mogadishu for failing to cope with the worsening economic situation in the north eastern state.

Economist by training, Ali was narrowly elected as Puntland President in January 2014. Ever since, civil servants and army troops have been complaining about long overdue salaries.

GAROWE ONLINE