Puntland orders use of Somali shillings for less than $10 transactions
Puntland president Abdullahi Deni has decreed against use of the American dollar for transactions which are less than $10 within the state.
Deni issued the decree Saturday noting that from today (Sunday), all transactions less that $10 will be transacted in the Somali shilling in what his administration said is a move to salvage the value of the Somali shilling which has depreciated in recent months.
“From tomorrow 10 dollars or more will have to be used for mobile money transactions,” Deni said noting his government had reversed an earlier order which set the bar at $1.
According to the directive, all transactions of less than $10 will be made using the Somali shilling which means all payments of such amounts will be made in cash. The mobile money system is calibrated on the American dollar.
The Puntland government also reversed an earlier order that required traders to pay import and export taxes in dollars. The new order now requires only 10% of the taxes to be in Somali shilling.
Deni said the decision to reverse the order was informed by complaints from traders who have in recent weeks protested the directive