Inflation fear hits South Sudan ahead of new currency circulation
As the Republic of South Sudan officially introduces its new currency early next week, the head of the country’s central bank has said inflation rates in neighboring Uganda and Kenya could affect the new country’s economy.
Addressing journalists a media briefing held at the bank’s premises on Tuesday, Elijah Malok said officials from the bank, ministry of finance and economic planning, energy and mining will meet to determine the exact value of South Sudan pound.
“The current inflation in the region, especially in Uganda and Kenya, will definitely affect the newcountry in the short-term until we come up with a floating policy,” said the head of newly created Central Bank of South Sudan (CBSS).
The new currency, which is in denominations of one, five, 10, 25, 50 and 100 will be effective as of 18 July. They will be distributed amongst the population in exchange for Sudanese Pounds (SDG) at designated distribution centres. It is expected that the exchange rate will be 1:1.
A committee, Malok revealed, will soon be formed in all the 10 states of South Sudan to create awareness of the new currency, its value and the special features on the notes.
South Sudan’s central bank, its head said, is currently involved in negotiations with the north to redeem the old currency from South Sudan.
With the Central Bank Act still before South Sudan Legislative Assembly (SSLA), Malok urged the population to remain calm and that plans are already underway to have salaries for civil servants paid in South Sudan Pounds, effective July.
The notes printed by the UK company, De la Ru will have a portrait of John Garang.