By Zamzam Osman

Garowe, Puntland – The Puntland administration has announced plans to introduce its own regional currency, a decision that highlights growing frustrations with Somalia’s federal government over unresolved political and economic disputes. The announcement was made by Puntland President Said Abdullahi Deni during the inauguration of the Puntland government bank’s new headquarters.

President Deni outlined the reasons for the initiative, emphasizing both the region’s economic challenges and its right to financial autonomy under Somalia’s federal framework.

“We’ve waited long for a unified Somali shilling system, but no progress has been made,” said President Deni. “The Somali shilling has faced collapse, devaluation, and reduced utility, especially in rural areas where electronic transactions are impractical. Puntland cannot afford to wait indefinitely while our people face daily struggles.”

Currency as a Tool for Self-Reliance

The President stated that the new currency is a necessary step to address the region’s unique financial needs while preserving the vision of a unified Somalia. “This is not about abandoning Somalia,” he clarified. “It’s about ensuring Puntland has the tools it needs to sustain itself while we continue to hope for a united federal Somalia that functions properly.”

Citing constitutional provisions, President Deni argued that Puntland’s financial independence aligns with the region’s rights under Somalia’s federal system. He instructed the Ministry of Finance and the Puntland Bank to expedite studies and preparations to introduce the currency by 2025.

“Puntland’s independence in management does not contradict our commitment to Somalia’s unity. It is about survival and planning for a sustainable future,” Deni emphasized.

To kickstart the project, Puntland’s Minister of Interior, Federalism, and Democracy, Abdi Farah Juxa, announced a public competition to design the new currency. The contest invites Puntland citizens to contribute creative ideas, including the name, color, and features of the currency, which should reflect the region’s identity and vision.

“The Puntland Currency Design Contest: Name, color, features, and a concept explaining the vision behind your idea,” Minister Juha posted on Facebook. He called on citizens to participate, adding, “This is a critical step toward reliable self-governance as we work within Somalia’s federal framework.”

A Reaction to Political Stalemates

The timing of the announcement reflects Puntland’s growing frustration with the federal government’s inability to address key governance issues, including elections, constitutional reforms, and fiscal policies. Analysts interpret the decision as a signal of hopelessness about reaching consensus with Mogadishu.

President Deni acknowledged the strained relations but expressed hope for eventual reconciliation. “This currency is not an end goal; it is a step to ensure Puntland can thrive economically while we wait for a time when all Somali regions can agree on a unified system,” he said.

Implications for Federalism

The introduction of a regional currency could have significant implications for Somalia’s federal system. While Puntland leaders insist the currency will eventually align with the federal framework, the move underscores the region’s increasing push for self-reliance amid political deadlock.

Critics warn that such unilateral actions could set a precedent for other regions, potentially challenging Somalia’s fragile federal arrangement. Supporters, however, argue that the initiative is a pragmatic response to the federal government’s failures.

The Puntland government has set an ambitious timeline to finalize studies and launch the currency by the end of 2025. In the meantime, the region’s leaders are urging federal authorities to address Puntland’s grievances to prevent further divergence.

As Minister Juxa put it: “This is not about division; it’s about solving real problems for real people. Puntland will always advocate for sustainable governance within Somalia’s federal system, but we will not wait in silence while our people suffer.”

This bold initiative marks a turning point in Puntland’s history, with leaders determined to secure the region’s future while navigating the complexities of federalism in Somalia.