Somalia: Central Bank criticizes Puntland over counterfeit currency

MOGADISHU, Somalia, September 5, 2015(Garowe Online)-The head of Somalia’s highest monetary authority Bashir Isse Ali has warned of the circulation of counterfeit banknotes printed in Puntland, in a major blow to President Abdiweli Mohamed Ali on Saturday, Garowe Online reports.

In a statement issued by the Central Bank Governor, Ali said the printing of fake currency could skyrocket the prices of basic commodities, and will hurt the country’s already troubled economy.

“Counterfeit money will spur economic problems, unethical acts and wrongdoings,” said Central Bank Chief according to state-run station, Radio Mogadishu.

Moreover, he stated that Somalia and international agencies including IMF will be cooperating on the printing of more legitimate currency and the cancelation of debts as part of monetary reform policy.

He officially called the spurious banknotes printed at a plant in the Gulf of Aden port city of Bossaso,’illegal’, urging Puntland authorities to hold back.

On August 24, Garowe Online correspondent spotted the papers inside busy markets as some locals continue to defy government’s order for compliance.

Experts are warning against devastating inflation and devaluation of Somali shilling in the weak economy.

Puntland President has been trying to allay growing public frustrations and complaints by disgruntled civil servants and security forces since the beginning of the year, 2015.

The printing could also risk blow to confidence of World Bank in the northeastern state, analysts hinted. 

GAROWE ONLINE