Somalia urged to back new shilling with foreign reserves
By the AFREEQUE newsroom, based on Puntland Post
Somalia is considering reintroducing a national currency after more than 30 years without an official issue, amid heavy reliance on the US dollar. A commentary published by Puntland Post recommends, among other things, backing every shilling with foreign currency reserves and basing the fixed exchange rate on an economic study rather than a political decision.
An editorial in Puntland Post calls on the Somali government to back the new shilling with foreign currency reserves covering 100 to 110% of the currency issued. The recommendation follows Finance Minister Biixi Iimaan Cige’s remarks about plans to reintroduce a national currency with a fixed exchange rate.
