Puntland unveils new monetary policy, vacates earlier dollar restrictions

GOOBJOOG NEWS|PUNTLAND:   Puntland president Abdullahi Deni has announced a raft of monetary policy measures following recommendations from a committee to advise on regulation of the shilling amidst a free-fall that has adversely hit the state economy.

According to a statement released by the state presidency, the new measures include a reversal of previous orders and implementation of steps meant aimed at taming the run-away depreciation of the shilling.

Among the new measures include payment of 20% of port fees in Somali shillings and a  similar percentage for salary payments. This means public servants will now receive 20% of the salaries in Somali shillings, unlike the prevailing situation where salaries were fully paid using the dollar.

The adopted recommendations from Senator Abdirahman Faroole led committee also rescind an earlier presidential decree banning mobile money transactions for amounts less than $10. Mobile companies have now been given the green light to resume transactions on any amounts.

All local government taxes will now exclusively be in the local currency, the committee recommended. The new measures now put the exclusive monetary regulations including currency stability in the hands of the state central bank.

Movement of the Somali shilling between states will now be restricted, the new measures read.