Somali Prime Minister Unveils Strategic Plan to Restore Somali Shilling, Combat Soaring Inflation
Mogadishu – Somalia is planning to reintroduce the Somali Shilling as part of efforts to tackle the country’s inflation.
The country has been relying on foreign currencies, primarily the US dollar for exchange of goods and services, believed to be posing significant challenges to the country’s economic stability.
Somali Prime Minister Hamza Abdi Barre said the government has laid financial plans and discussed the process of taking the central bank’s branches to the Federal Member States.
He was speaking on Tuesday during a meeting with the Somali Shilling reprinting committee.
Prime Minister Barre explained the government’s financial plans and discussed the process of taking the central bank’s branches to the Federal Member States.
The committee briefed the Premier on the challenges they are facing in introducing the new Shilling.
They have suggested the urgency of reprinting the Somali Shilling and the starting of branches of the central bank in Puntland, Jubaland, South West, Hirshabelle and Galmudug states.
The reintroduction of the Somali Shilling is expected to address the significant inflationary pressures that have plagued the country’s economy for years.
The government hopes that by printing its own currency, it will be able to better manage the money supply, control inflation, and reduce the country’s reliance on foreign currencies.
“The reintroduction of the Somali Shilling will require significant investment in infrastructure, including the establishment of central bank branches in all Member States,” said the Premier.
“There are also concerns about the security risks associated with transporting large amounts of cash across the country,” he added.
Mogadishu has committed to reintroducing the Somali Shilling with the committee expected to develop a roadmap for the process.
The move is seen as a significant step towards restoring the country’s economic stability and promoting sustainable growth.