Feb 12, 2021(Nyamilepedia) — The Central Bank on Tuesday introduced a new bank note of SSP 1000 as a way to cope with hyperinflation of the currency.
Speaking during a press conference, the Central Bank Governor Dier Tong Ngor said a new Pound bill of 1000 will start to circulate as a way to make transactions more efficient.
Governor Dier Tong Ngor said that the government carries out a review of the denomination periodically to ensure it aligns with the macroeconomic demands.
“As you are aware, the past few years have been characterized by high inflation and a perpetual depreciation of the currency which has eroded the face value of our banknotes. Bank of South Sudan carries out a review of denomination mix from time to time to ensure that the available denomination mixes are aligned with the macroeconomic conditions and the demands,” the central bank governor explained.
“Much thinking went into the decision to introduce the SSP 1000 denomination banknote. In doing this, we aim to align the structure of the banknotes with the needs of the people who use them for their daily transactions. We need banknotes that are convenient and that are of high quality and security and also cost-effective,” the central bank boss said.
He further said that in July 2019 the Bank of South Sudan planned to introduce the SSP 1000 after the successful introduction of the SSP 500 banknote in 2018 which showed to us the significant increase in the demand for the higher denomination of banknotes.
He said the new currency is more convenient as it complements the existing banknotes which will ensure customer convenience and bring about efficiency in the printing of currency and to generate savings for the country.
He said the introduction of this ‘high-value’ note should not be misinterpreted to mean a shift away from the central bank policy of promoting the use of electronic payments.
“While vigorously pursuing financial inclusion by accelerating the migration to e-payments platforms, we are also mindful of the relevance of cash in our day-to-day lives and dealings. Undeniably, cash is still the king and preferred medium of payment by the large and formal sector in our economy,” Dier Tong explained.
“This is why we continue to pay attention to enhancement in the structure, security, features, and management of cash within the economy. In the coming days the Bank of South Sudan will embark on a nation-wide campaign to educate the general public on the key security features of the new denomination,” he added.
He said printing 1000 bank notes will reduce the cost of printing as it is less expensive than printing lower denomination notes.
“This one will reduce that significantly. The other justification is storage. Storage has been a challenge to us because we have these small denominations and you need massive space to store these small currencies. This one will change with the introduction of the new currency,” the central bank governor explained.