Puntland Regulates Money Transfer Wallets to Curb Inflation

[Deeq A.]

Garowe (PP News Desk) — Puntland State Government moved to clarify the policy to collect import-export duties only in US dollars due to its unintended consequences for the use of the Somali shilling for transactions.

In a statement on tackling the inflation, Puntland Government resolved to regulate electronic money transfers via Sahal and E-dahab.

Puntland President Said A.Deni (third from left) chaired the meeting to regulate money transfer wallets in Puntland.

“In response to complaints about the exchange rate in Puntland, from December 5, 2020, any transactions less than 1 US$ will not be used for money transfer wallets such as Sahal and E-Dahab” reads the statement.

Puntland Government instructed local governments in Puntland to accept the Somali shilling for transactions. “ The use of the Somali shilling has not been banned in Puntland” the statement added.

On Tuesday, Puntland Government issued a decree on the sole use of the US dollars for collecting import-export duties.

Businesses in Puntlanded switched to use of the US dollars for transactions due to a higher exchange rate of the greenback against Puntland-printed Somali shillings.

Economists believe the belated, light regulation of the money transfer wallets will have a negligible impact to rein in the inflation in Puntland.

© Puntland Post, 2020

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