Mogadishu (Alshahid) – Somali cabinet ministers have formally approved printing of new national currency amid fears it could cause inflation in the country where majority of the people are living in poverty.
In an interview with radio Simba, the minister of finance, Mr. Abdirahman Yarisow, said Somali government has taken into considerations the consequences of the measure before it reached the decision.
“New banknotes of 1, 000 and 2, 000 denominations will be printed “he said.
5, 000, and 10000 will be also printed while 50,000 is the biggest denomination.
He pointed out that the process will take time before the currency starts its full circulation while most of the country is ruled by anti-government groups who are unlikely to accept the circulation of this money in their strongholds.
The minister said printing new money was necessary because Somalia’s old banknotes had either disappeared or are in bad state
The second deputy speaker of the Somali parliament Mohamed Omar Dalha said the new the will also deal with inflation and help stabilize Somali economy.
The plan has received mixed reaction from the Somali public with some pointing out that it will help Somalia’s economy while some intellectuals argue it will aggravate conditions since Somali government does not control most parts of the country.
