Somalia: Spurious banknotes paid to Puntland Govt employees, troops

BOSSASO, Somalia, August 25, 2015 (Garowe Online)-Puntland government in northern Somalia has paid new banknotes printed in private plant set up in the Gulf of Aden port city of Bossaso to civil servants and security forces, Garowe Online reports.

GO correspondent spotted the controversial currency which right away led to increase in exchange rates at markets.

Foreign currency exchanges, notably US dollars stood at 2, 200,000.00 on Tuesday morning, 30,000 Somali shilling apart that of Monday.

The payments in new Somali shillings came after Puntland President Abdiweli Mohamed Ali acceded to a plan by some businessmen to print banknotes as the government is grappling with long overdue salaries of employees and security forces.

Nairobi-based expert who asked to remain anonymous told Garowe Online that the printing could risk blow to confidence of World Bank in the government.

World Bank is weighing to help the northeastern state pay salaries of civil servants under a deal signed in late 2014 in the state capital of Garowe.

Garowe Online will keep you updated on latest business transactions and looming depreciation of Somali shilling against US dollars. 

GAROWE ONLINE