Puntland regional state President Said Abdullahi Deni announced plans to introduce a new regional currency by the beginning of 2025 to boost the state’s economy.
The decision comes after the region ceased using the Somali Shilling in 2021 and currently relies on the U.S. dollar and money borrowed from telecommunications companies.
President Deni emphasized on Saturday that the new currency would align with Somalia’s financial system in the future as the region moves towards greater economic independence.
“The Puntland government has initiated a study on creating its own currency, similar to practices in some federal countries. This currency will be compatible with Somalia’s financial system in the future when the mindset and circumstances improve,” he said.
Puntland stopped using the Somali Shilling in 2021 after President Deni ordered the cessation of tax collections at Bosaso port in Somali Shillings, followed by traders’ rejection of the Somali Shilling currency.
