The South Sudanese government has reportedly banned US dollar transactions and ordered all local payments to be settled in the local currency. Salva Kiir Mayardit’s government reportedly said it also wants all business contracts signed to be based on the local currency.
The economic collapse of South Sudan
As part of efforts to revive South Sudan’s war-torn economy, the government of Salva Kiir Mayardit recently banned US dollar-based transactions, according to a report. Instead of the dollar, the government reportedly ordered all local payments to be settled in the local currency, the South Sudanese Pound (SSP).
according to a report In East Africa, the South Sudanese government’s move is likely to have a negative impact on the operations of importers and regional banks established in the hyperinflation-affected country.
Before banning dollar transactions, Slava Kiir’s government had established a committee tasked with recommending measures to revive South Sudan’s hyperinflation-hit economy. However, despite the presence of the committee, South Sudan still saw its worst moment. economic crisis in 2022. This, combined with crippling hyperinflation, has now left some 7 million residents of South Sudan facing severe food shortages and possible starvation.
Meanwhile, in addition to banning transactions in US dollars, the South Sudanese government has said it wants all business contracts signed to be based on the local currency.
“That is a clear directive from the Central Bank that all transactions in South Sudan must be done in our currency. Therefore, all commercial contracts must be signed in our local currency,” Michael Makuei Lueth, the country’s information minister, was reported as saying.
Despite sitting on top of the largest known crude oil reserves in sub-Saharan Africa, civil war and ongoing violent clashes between different groups have ensured that South Sudan remains one of the poorest and least stable countries in Africa. Africa.
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