Mixed Reactions in Puntland to the Announcement of a New Regional Currency

by: Horn Observer Contributor | 23 December 2024 23:44

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Mixed Reactions in Puntland to the Announcement of a New Regional Currency

GAROWE, Somalia (HORN OBSERVER) – A day after Puntland President Said Abdullahi Deni announced plans to introduce a Puntland-specific currency, locals reacted to the idea of having Puntland currency.

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On Saturday, President Deni revealed the plan to print Puntland Currency during an event organized by the Puntland Central Bank in Bosaso.

GAROWE, Somalia (HORN OBSERVER) – A day after Puntland President Said Abdullahi Deni announced plans to introduce a Puntland-specific currency, locals reacted to the idea of having Puntland currency.

The announcement has sparked mixed reactions among the public. Some residents have embraced the idea enthusiastically, even giving the proposed currency a name—the "Puntland Shilling.”

"It’s a big day for me. I am happy that the Puntland president announced the creation of a Puntland currency,” said Halima, an elderly woman in Garowe.

Others, like Mohamed, a university student, expressed skepticism about the practicality of introducing a regional currency without the involvement of the Somali Federal Government.

Concerns over inflation were also raised by some residents. Ali, a local businessman, warned against potential economic instability, recalling past incidents when counterfeit currency flooded the market, leading to painful inflation.

The Somali Federal Government has not yet commented on the announcement.

On Saturday, President Deni revealed the plan during an event organized by the Puntland Central Bank in Bosaso. "Puntland has been waiting a long time for a unified Somali shilling, but that has not been achieved. Therefore, Puntland has decided to create its own currency,” Deni declared.

He added that the new currency, expected to be introduced in 2025, would coexist with the Somali shilling. He emphasized that the move is not intended as a step toward secession but is aligned with the federal system.

"This decision is about Puntland making independent choices within the framework of federalism until Somalia establishes a comprehensive governance system,” Deni stated.

The announcement comes amid ongoing tensions between Puntland and the Federal Government of Somalia (FGS) in Mogadishu. Puntland has frequently accused Mogadishu of sidelining federal states in decision-making processes and failing to uphold the federal principles outlined in Somalia’s provisional constitution.

These disputes have intensified over issues such as resource sharing, international aid distribution, and electoral management.

President Deni has been a vocal critic of what he perceives as Mogadishu’s centralization of power, which he argues undermines the autonomy of federal member states. Conversely, the federal government has accused Puntland of unilateral actions that challenge national unity.