The South Sudan Council of Ministers on Friday adopted a resolution that all payments in the country should be made in the local currency, according to Information Minister Michael Makuei.
The move is part of efforts to overcome a crippling economic crisis. The local currency, the South Sudanese pound, has tumbled rapidly, driving prices of commodities higher.
The South Sudan economy, which relies almost exclusively on oil revenues, has been shattered by several years of civil war and this coupled with the disruptions caused by the COVID-19 pandemic has led to a drastic drop in oil prices.
“The ministry of finance is to make all payment obligations in local currency because this is one of the major problems,” Michael Makuei said. “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 reiterated that all contracts are supposed to be in national currency, not in dollars, “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.”
“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 added.
He said that all transactions should be done through the banks because this will help in controlling the economic crisis.
Makuei, who is also the government spokesman, said the cabinet listened to the report of the ad hoc committee which was chaired by Cabinet Affairs Minister, Dr. Martin Elia Lomuro. The committee was set up to look into the potential ways by which South Sudan can tackle the main drivers of currency depreciation and inflation in the country.
“The first part talked about measures to reform and strengthen the ministry of finance and planning. 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.
Send your news stories to and features to . Chat with us via WhatsApp on +233 55 2699 625.
Newer articles:
- African Union Member States reporting COVID-19 cases as of 21 October 2020 - 21/10/2020 10:45
- Sudan: army foils coup attempt by retired officers - 21/10/2020 09:48
- 9 new Covid-19 cases in quarantine with a possible reinfection - 20/10/2020 09:15
- Heads of Mission Concerned About Increased Threat Facing Aid Workers in South Sudan - 20/10/2020 03:53
- ‘South Sudan must form hybrid court to try war crimes’ - 19/10/2020 21:12
Older news items
- South Sudan gains its first international fibre cable link - 19/10/2020 09:37
- Sudan Pledges Cooperation with ICC on Former Leader Omar al-Bashir | Voice of America - English - 19/10/2020 09:26
- South Sudan’s top UN envoy reassures displaced families during first visit to Bentiu and Malakal since COVID lockdown - 19/10/2020 00:31
- Chipolopolo Secure South Sudan and Ethiopia Friendlys - 18/10/2020 08:11
- South Sudan Health Experts Warn Of COVID-19 Second Wave Amid Relaxation In Measures - 17/10/2020 19:39
Latest news items (all categories):
- UAE company agreed to loan $13B to South Sudan in exchange for oil - 27/04/2024 16:44
- South Sudan auditor flags spending of IMF funds - 27/04/2024 16:41
- UN Aid Trucks Held up at South Sudan Border - 27/04/2024 16:37
- South Sudanese comedians find laughs in painful past - 27/04/2024 16:34
- The DRC had the world's biggest military spend increase last year – and South Sudan was second - 27/04/2024 16:29
Random articles (all categories):
- US ambassador demands release of South Sudan activist - 02/08/2018 21:58
- South Sudan faulted on preventing aid workers leave base - 06/05/2015 03:31
- ICC prosecutor urges Sudan to arrest Beshir - 08/06/2009 10:27
- Christmas from afar: New Zealand troops in South Sudan and Florida, US - 24/12/2020 12:55
- US takes leading role on Sudan but faces limited leverage - 26/04/2023 05:42
Popular articles:
- Who is the darkest person in the world, according to Guinness World Record? - 25/10/2022 02:34 - Read 31840 times
- No oil in troubled waters - 25/03/2014 15:02 - Read 21862 times
- School exam results in South Sudan show decline - 01/04/2012 17:58 - Read 20745 times
- NDSU student from South Sudan receives scholarship - In-Forum - 29/09/2012 01:44 - Read 17298 times
- With prisons full, South Sudan to introduce mobile courts to clear backlog of cases - 11/10/2012 11:29 - Read 14214 times