The new Somali shilling notes may come into circulation this year, alongside the US dollar that's been the main means of payment, and will replace fake or old currency in circulation, said Samba Thiam, the IMF's country head.
"About 98 per cent of the currency circulating in the country is fake," Mr Thiam said in an interview Friday in Nairobi, the capital of neighboring Kenya. "The remaining 2 per cent is currency printed during 1990-91, still circulating, but in very bad shape."
Somalia's descent into anarchy began with the ouster of dictator Mohamed Siad Barre in 1991. A subsequent Islamist insurgency has hastened the destruction of its political and economic institutions, slashing annual per capita income to US$435 and making Somalia the world's fifth-poorest country, according to the World Bank.Printing of the new notes, which will initially be in small denominations, is aimed at restoring the Central Bank of Somalia's powers to set monetary policy, he said. While the institution doesn't have the money to finance the plan, donors will back the reforms and financing will be agreed on once the government decides whether it wants a floating- or fixed-rate currency regime.
While Somalia qualifies for debt cancellation, it would have to clear arrears that are part of US$5.3 billion owed to international creditors such as the IMF, World Bank and African Development Bank to secure fresh funding, Mr Thiam said. Writing off Somalia's loans depends on progress toward curbing corruption, introducing a new currency and an effective monetary policy in the US$6 billion economy.
"There are hurdles," Mr Thiam said. "But there is a general willingness from creditors to write off Somalia's debt when the time comes, it's a good prospect. They will not be asked to repay the debt tomorrow, so they have time to work on consolidating their economic base. The debt is an issue that will be resolved some time." Economic growth may slow to 2.5 per cent in 2017 from 3.7 per cent last year, the IMF estimates. Agriculture accounts for 40 per cent of national output in the country whose main export is camels to Gulf Arab countries.
The IMF is also assisting the central bank with regulation and supervision of the financial sector to open it to new investors, Thiam said. KCB Group Ltd and Commercial Bank of Africa Ltd, neighbouring Kenya's first and sixth-largest banks by assets, are among lenders that have applied to set up shop. Somalia has six banks and 12 money-transfer businesses.
Somalis living abroad have buoyed the economy with remittances of as much as US$2.3 billion a year, Mr Thiam said. "We pretty much think the amount that could be going unnoticed, undeclared must be much bigger." President Mohamed Abdullahi, elected into office this month, must make good on his word to fight graft, Mr Thiam said. Somalia is the world's most corrupt nation, according to Berlin-based Transparency International.
Improving governance may enable the nation to exploit potentially "quite large" oil and gas reserves, Mr Thiam said. The government has said production could begin as early as 2020 after exploration by companies such as Royal Dutch Shell Plc, Exxon Mobil Corp and BP Plc showed probable offshore hydrocarbon deposits. The state has held talks with those companies about reactivating dormant contracts.
BLOOMBERG
President HSM's Proclamation to Defeat Al-Shabab by Force in Somalia To overcome the complex problems of civil war, state fragility, and underdevelopment, the Somali people supported risky political changes for a government that promotes freedom, justice, peace, and prosperity in Somalia. For example, the Islamic movements enjoyed popular support to end the brutal reigns of warlords and the military occupation of Ethiopia and establish new government. Full Article
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After 30 years of dictatorship and civil war, the Somali people pulled off a qualified consensus on forming a new state that is different from the obliterated one. The President of the Federal Republic of Somalia is vested with the awesome responsibility and authority to steer the formation of the new state. Successive elected presidents strived to some extent to fulfill their awesome responsibilities with the exception of President Mohamed Abdullahi Farmajo who strived to tear Somalia apart for good. Full Article
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President HSM's Proclamation to Defeat Al-Shabab by Force in Somalia To overcome the complex problems of civil war, state fragility, and underdevelopment, the Somali people supported risky political changes for a government that promotes freedom, justice, peace, and prosperity in Somalia. For example, the Islamic movements enjoyed popular support to end the brutal reigns of warlords and the military occupation of Ethiopia and establish new government.
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Waagacusub.net - IBS Bank Somalia, which is believed to have the largest amount of money, Al-Qaeda Finance Secretary Fazul Abdallah from Comoros has started issuing Visa Card Payments for the first time. Al-Shabaab's finance secretary confirmed that Mohamed Ali Warsame had $ 157 million in cash, according to Khalif Ereg, who was later bribed with $ 2 million.
I hereby inform the country that By virtue of the Authority given to the President of Uganda by Articles: 108(2), 108A(1), 113(1) and 114(1) of the 1995 Constitution of the Republic of Uganda, I hereby appoint H.E. the Vice President, Rt. Hon. Prime Minister, Honourable Cabinet Ministers and other Ministers as indicated below:
The Associated Somali Journalists is deeply concerned that journalists were today barred from covering the meeting of the leaders of the Federal Government of Somalia and Federal Member States (FMSs) as well as the Governor and Mayor of Mogadishu.
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IMF to help Somalia print first banknotes in a quarter century
[NAIROBI] The International Monetary Fund is backing Somalia's plans to replace tattered currency notes that were printed before the Horn of Africa nation plunged into civil war almost three decades ago.