Economics News

South Sudan Not Printing 1000 SSP But Oil Revenues Goes To President Kiir and Finance Minstry Accounts


Kornelio Koriom, South Sudan’s Central Bank Governor addresses journalists in Juba, 11 September 2012(Photo: file)
Kornelio Koriom, South Sudan’s Central Bank Governor addresses journalists in Juba, 11 September 2012(Photo: file)

Nov 25, 2016(Nyamilepedia)  —- Speaking to Nyamilepedia press at press conference in Juba, Kornelio Koriom, the Central Bank Governor, says the Bank is not printing any new notes with the dominations of two hundred, five hundred or even one thousand South Sudanese pounds as alleged.

Speaking on Friday morning, Koriom however admits that the bank has printed more currencies which he calls “new currencies” purposely to replace the “damaged ones”

“The Bank is only injecting new n the market to replace the damaged ones and those that are torn-up or numberless,” Koriom said.

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He added that the Bank has no any plans to print or replacement or even change the South Sudanese Currency.

In other hands, he stated that the reports which are being circulated within the communities of South Sudan and on social media are baseless reports intended to exaggerate the ongoing inflation in the country.

“There were rumours’ going that Bank intends to make an introduction of new notes to raise South Sudan Economic gross products and South Sudanese Currency against United States Dollars,” Governor said.

On September 01, media reported that The Central Bank of South Sudan is facing a serious crisis that threatens to further erode confidence in the country’s currency and trigger more economic instability, according to high-level sources in Juba working in the banking sector.

According to credible sources at the central bank and international monetary institutions, South Sudan banks are short of dollars and has halted its inter-bank lending service.

The sources further reported that the bank has stopped getting dollar deposits from the Ministry of Finance as it used to do in the past.

The source reiterates that whatever little that comes from the oil proceeds is not deposited into the banks, instead it ends up with the Ministry of Finance and the Office of the President, which have urgent obligations to settle.

In other words, the oil revenues are not deposited into South Sudan central banks but to bank account for the ministry of finance and to the office of president Kiir.

Normally, they said, the central bank gets its dollars by exchanging its pounds with dollars from the Ministry of Finance at an agreed upon rate but this source is now dried up, making it difficult for the bank to conduct inter-bank services.

Multiple sources confirmed that the central bank’s inter-bank lending was halted some time ago.

This implies that the central bank no longer has enough dollars to exchange with to commercial banks and forex bureaus.

Dollar deposits at these institutions are therefore at risk of being depleted or already have been depleted.

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