President of Puntland, the federal state of Somalia, Abdullahi Deni has announced that Puntland plans to print its own currency next year for foreigners. The relations between federal government of Somalia and Puntland are tense these days. Puntland demands greater autonomy and self-governance.
“We have been waiting for a long time for a unified government to create a unified Somali shilling, but it does not appear,” President Deni stated, explaining the motivation behind this significant monetary initiative. The president also said that the move does not signal a departure from Somali unity, pointing out that “there are many federal countries in the world that have two currencies.”
Puntland is currently conducting studies on introducing its own currency, with plans to integrate it into Somalia’s financial system. It could introduce its currency in 2025 and completely abandon the shilling that is Somalia’s official currency. Puntland has been using US dollar for marketing for the last 3 years.
Puntland & federal government have been involved in disputes about constitutional amendments, federalism etc. In August this year, Puntland suspended its relations with federal government, refusing to recognize Hassan Sheikh as the President of Somalia.
Somalia’s federal member states are known for bypassing Mogadishu’s federal government. They enter into agreements with other countries without involving Mogadishu. Last week, Jubaland regional forces killed dozens of federal force members in Ras Kamboni. Jubaland has also cut off working relations with federal government.
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