Somalia: Govt Withholds Currency From Market

| January 6, 2013 | 0 Comments

Mogadishu — The Somali federal government says that Somali Shilling currency ordered by the previous Transitional Federal Government (TFG) and printed in Sudan will be ‘postponed’ from entering Somali markets until a later date, Garowe Online reports.

Somali President Hassan Sheikh Mohamud returned to Mogadishu after a two-day state visit to the Sudanese capital Khartoum, where he held talks with Sudanese President Omar al-Bashir on issues related to Somalia.

President Hassan told Mogadishu media on Thursday that discussions with the Sudanese leadership included signing a “cooperation agreement” between the two sides.

“Somalia and Sudan signed a Cooperation Agreement that covers Sudanese assistance in the sectors of water, institution-building and training support for training Somali police force,” said President Hassan.

The Somali president indicated that the Sudanese government would “send technical experts to Somalia” to provide assistance in capacity building for government institutions, particularly financial institutions.

Continuing, President Hassan said newly printed Somali Shilling currency in Sudan, which includes up to 50,000-Shilling banknote unseen in Somalia, will be “postponed” from entering Somali markets, pending the strengthening of financial institutions capacity in Somalia.

Financial experts in Somalia say the Shilling currency has experienced deflation since early 2011, in part due to shortage of Shilling banknotes in Somali markets.

Puntland government in northern Somalia, which falls under the Federal Constitution of Somalia, has previously warned against injecting Somali markets with new currency without a planned consultative approach.

Culled from :Here

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Category: Africa News