IMF Urges Somalia to Expedite Printing of Somali Shilling Amid Economic Reforms.

IMF Urges Somalia to Expedite Printing of Somali Shilling Amid Economic ReformsThe Executive Board of the International Monetary Fund (IMF), upon completing the third review of Somalia’s debt relief program, has issued several key recommendations to the Federal Government of Somalia aimed at bolstering the country’s economic stability.

Among the IMF’s recommendations is a call for the Somali government to accelerate efforts to print and reintroduce the Somali shilling, citing the “growing need for a stable national currency across the country.”

Following a comprehensive review, the IMF Executive Board approved the disbursement of approximately $10 million to Somalia to help fill the gap in the national budget. The decision came after an in-depth assessment of Somalia’s progress in financial and economic areas.

The Board praised Somalia’s improvements in revenue collection, modernization of its financial systems, and the adoption of a new Income Tax Law, which it described as “critical to sustaining fiscal reforms.”

The IMF also noted progress in Somalia’s oil and petroleum sector but called for stronger legal frameworks to combat corruption and ensure transparency in the country’s nascent resource extraction efforts.

However, the IMF warned of a downturn in Somalia’s projected economic growth for 2025, compared to 2024. The agency underscored the importance of continued reforms and sound fiscal management to mitigate the impact of external shocks and domestic vulnerabilities.

The printing of a functional, stable Somali currency has long been viewed as a milestone toward achieving monetary sovereignty and strengthening public confidence in the economy, especially in rural and underserved areas.

Mustaqbal