World Remit Founder Accuses Central Bank of Somaliland of Currency Devaluation
World Remit founder and chairman, Ismail Ahmed, has publicly accused the Central Bank of Somaliland of causing a devaluation in the local currency, the shilling. Ahmed alleges that the Central Bank has been printing and releasing electronic money inappropriately, which has led to an oversaturation of shillings in the market, thereby weakening the currency’s value. He has issued a stark warning to the Somaliland government, stating that the nation could face economic collapse if the issue is not promptly addressed.
Ahmed’s warnings have not only highlighted the potential economic implications of the alleged currency devaluation, but also the potential impact on the livelihoods of government employees, impoverished citizens, and rural communities who earn their income in shillings. In addition to this, Ahmed has drawn attention to a by-law that permits the Central Bank to charge a fee of 2.5% every time money is printed, implying that the Bank has an incentive to print more money.
Central Bank’s Rebuttal and Threat of Legal Action
In response to Ahmed’s allegations, the Central Bank of Somaliland has vehemently denied the accusations and has even threatened to take legal action against him for spreading baseless accusations that could potentially disrupt the nation’s exchange markets. The Bank has stated that no new money has been printed in the last seven years and that there are no plans in the pipeline to do so. It also denied the claim of charging a 2.5% fee from money printing.
The Central Bank released a statement contradicting Ahmed’s claim that the printed shillings equate to $30 million. The Bank maintains that there is no difference between money in circulation and any other type of money. It further asserted that over the last six years, it has increased the value of the shilling by 21% and maintained exchange rate stability, even amid global challenges like the COVID-19 pandemic and the war in Ukraine.
In an attempt to support his allegations, Ahmed posted an invoice on his social media, allegedly from the company that prints money, showing a total payment of $1,902,587.10. However, this evidence has not been independently verified. It should be noted that World Remit was granted a license by the Bank of Somaliland in 2018, but the company voluntarily revoked this in March 2022, and currently, does not maintain an office or staff in the country.
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