South Sudan’s decision to restrict US dollar usage backed by IMF
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Staff Reporter Garowe Online
- Posted On 26-02-2023, 12:51PM
JUBA, South Sudan - The decision by the government of South Sudan to limit the usage of US dollar has received a backing from International Monetary Fund (IMF).
This is according to Guy Jenkinson,IMF Resident Representative for South Sudan.
African newest state turned to the US dollar as part of the long term plan to contain the high cost of living for the people of South Sudan.
“We supports the South Sudan authorities’ efforts to ensure that the existing legal framework regarding legal tender for domestic transactions is respected. ”
The Bank of South Sudan has restricted the use of the US dollar in local transactions in favour of the highly volatile South Sudanese Pound (SSP).
Earlier this year the banking regulator ordered government institutions to sign dollar-based global contracts under the oversight of the ministry of Finance and Planning.
President Salva Kiir’s administration is pushing for the use of domestic currency as legal tender of its economy as way of taming the US dollar speculation, improve the value of its currency and cushion the people against the high cost of living.
The country’s banking regulator through a circular dated January 27 said the ‘‘unacceptable’’ practice of using the dollar has fundamentally undermined and threatened to erode public confidence in the SSP as a legal tender and must be entirely ‘‘discouraged’’.
“It’s prohibited for any institution, official or private within the legal jurisdiction of the republic of South Sudan to dominate its commercial transactions in any currency other than SSP. These include rent fees, travel industry, hotels, entertainment services, restaurants, commercial outlets, private services contracts and monetary dealings,” said Johanny Ohisa Damian, the BoSS Governor.
GAROWE ONLINE
