Somalia: Counterfeit Shillings circulated in Puntland economy

GAROWE, Somalia, September 8, 2015 (Garowe Online)-Millions of counterfeit shillings got circulated in local economy, with gradual increase in prices and growing destabilization of Somali currency against the US dollar, Garowe Online reports.

On Monday, Puntland government cancelled a press briefing to respond to statement by Somalia Central Bank Governor Bashir Isse Ali, who deemed banknotes printed at a plant in the Gulf of Aden port city of Bossaso without legitimate sanctions ‘illegal’.

Parliament speaker Saed Hassan Shire is visiting Galkayo, and the printing of new currency is likely to dominate discussions with Puntland President, Abdiweli Mohamed Ali.

Parliamentary standing committee is also expected to convene on possible measures if signs of further plummeting emerge over the next few days.

“Counterfeit money will spur economic problems, unethical acts and wrongdoings,” the head of the country’s highest monetary authority said in a statement carried by state-run station, Radio Mogadishu.

The infiltration is seen to be weakening the exchange rates and now-stable prices of basic commodities.

Despite tax revenue, the government paid spurious banknotes to civil servants and security forces.

Businessmen and politicians allied with the President are believed to have backed the government on the printing of currency- a moot point that sparked off public debate over the reasons behind counterfeiting of paper money.

Meanwhile, experts continue to warn the government of the ill-impact of new currency on value of real money, market prices and business transactions. 

GAROWE ONLINE