Deni convenes crisis meeting as Shilling suffers free-fall

GOOBJOOG NEWS|PUNTLAND: Puntland President Abdullahi Deni Sunday convened an emergency meeting following an ongoing currency crisis that has resulted in run-away inflation in the easterly state.

Among those in attendance were deputy president Elmi Karash, former President Senator Abdirahman Faroole among other senior officials including state central bank governor.

The meeting comes as security forces in the state enforce an executive order compelling traders to use the Somali shilling instead of the US dollar. Security forces on Saturday enforced the order in Bosaso and were expected to take similar measures in Garowe today.

The state government ordered last month a ban on the US dollar for transactions less that $10 and instructed mobile phone companies not to offer any services for transactions on such capping.

The move follows a free-fall of the Somali shilling in Puntland which December hit a low of 46,000 Somali shillings to the dollar. However the state government has not been able to remedy the situation despite a raft of monetary policy measures.

Puntland suffered unmitigated inflation from 2018 when the then administration printed new notes to pay soldiers after several mutinies. The new notes which according to the Federal Central Bank are counterfeit resulted in inflation within Puntland and neighboring Galmudug.