South Sudan bans use of U.S dollar over the local currency, SSP.
Oct 18, 2020(Nyamilepedia) — Responding to economic crises, South Sudan has resolved to ban excessive use of U.S. dollar in the local market, a move that is expected to empower its weaken currency that is usually sidelined in preference for the American dollar.
Speaking to the media after the cabinet ministers meeting on Friday, the Minister of Information Communication Technology and Postal Services, Hon. Michael Makuei Lueth, said that South Sudan is making the use of South Sudanese pound for all transactions mandatory.
According to Michael Makuei, this decision was reached after the cabinet ministers listen to a report that was presented by an Ad Hoc committee led by the Minister of Cabinet Affairs, Hon. Martin Elia Lomuro.
Makuei regrets that everyone is asking for U.S. dollar for payments and very soon the water from the river Nile could be sold in U.S. Dollar if nothing is done.
“Houses are rented, when you go to the landlord he will tell you I want dollars. You want to hire a car, he will say I want dollars. Even the water from the river will soon be sold to us in dollars. If you go to any hotel, you must pay in dollars,” Michael Makuei reiterated.
“All the contracts that are made, even rental houses, rental cars, rental what, everything here in South Sudan is in hard currency. Why should we use the hard currency at a time when we have our national currency?” He asked.
Makuei said the cabinet has agreed that the use of local currency will no longer be an option except for a few cases that include embassies and those who are exiting the country.
“All these are problems that are created and this is why this committee has recommended that all the transactions inside South Sudan should be by local currency except for exceptional circumstances like embassies, those going abroad, and so forth,” Makuei continued..
Makuei further added that this law will be enforced right from the ministry of finance upto Konyokonyo and customs markets.
“The ministry of finance is to make all payment obligations in local currency because this is one of the major problems,” Makuei added.
The ad hoc committee tabled this as the first reform agenda that is needed to strengthen the local currency and stablize prices.
“The first part talked about measures to reform and strengthen the ministry of finance and planning.” He added.
In addition, the ad hoc committee is also coming up with plans on how to reform the central bank to curve the depreciation of the South Sudanese pound and price inflation.
“Part two deals with measures to reform and capacitate the Bank of South Sudan to combat the main drivers of South Sudan currency depreciation and inflation,” Makuei said.