The announcement comes amid ongoing monetary challenges in Somalia, where the national shilling has struggled since the central government’s collapse in the early 1990s.
Puntland, a semi-autonomous state in northeastern Somalia, has announced plans to introduce its own shilling currency by 2025. The decision comes in response to prolonged monetary challenges in Somalia, where the national shilling has struggled since the central government’s collapse in the early 1990s.
After waiting for years for Somalia’s federal government to create a single national currency, the decision was made. In order to clarify the rationale for this important financial endeavor, President Deni said, “We have been waiting for a unified government to create a unified Somali shilling, but it does not appear.”
Deni noted that “there are many federal countries in the world that have two currencies,” emphasizing that the action does not signify a break from Somali unity. He said that once a national agreement is reached, Puntland’s new currency will eventually be in line with Somalia’s larger financial system.
The announcement comes amid ongoing monetary challenges in Somalia, where the national shilling has struggled since the central government’s collapse in the early 1990s. The country’s financial system currently relies heavily on U.S. dollars for every transaction.
Despite efforts to revive Somalia’s Central Bank in the late 2000s, the country’s monetary system remains fragmented. Mobile money has emerged as a crucial financial tool, providing essential services to millions of Somalis in the absence of a developed banking sector.
President Deni described Somalia’s current situation as being at a “dangerous point” where maintaining unity and governance has become increasingly challenging. The Puntland government is currently conducting studies on implementing its own currency, with plans to integrate it into the broader Somali financial system when conditions allow.
