Puntland Government Regulates Mobile Money Platforms

Garowe (PP News Desk) — Puntland State Government yesterday reversed a decision that had mandated collecting import-export duties only in US dollars.

In a statement for the media Puntland President Said Abdullahi Deni declared that 10% of import-export duties will be collected in Somali Shilling. President Deni justified the volte face as a response to complaints from importers and exporters.

President Deni. “Experts view the predominant use of mobile money as the main cause of Somali shilling depreciation.”

The earlier policy prompted businesses to accept only the US dollar for transactions, sparking protests in Bosaso, Garowe and Galka’yo.

“Experts we have consulted point to the predominant use of the mobile money as the cause of Somali shilling depreciation. The decision to use not less than 1 dollar for mobile money transactions has been reversed because it contributes to depreciation of the Somali shilling. From tomorrow 10 dollars or more will have to be used for mobile money transactions” said President Deni.

Puntland President commended mobile money platforms such as Golis and Telesom for following instructions from the Government regarding the minimum amount of dollars for transactions, and the inclusion of the Somali shilling in the Golis e-wallet.

Puntland authorities have failed to enforce recommendations from a committee formed by the Government.

SIDRA, a Garowe-based think tank, urged the Federal Government of Somalia to help Puntland deal with the impact of the currency depreciation.

© Puntland Post, 2020