South Sudan’s cabinet agreed on Friday to change the country’s currency in order to improve the economy, the government spokesman said, without giving further details.
The current currency the South Sudanese pound (SSP), was adopted when the country gained independence from Sudan in 2011 after a long civil war.
Michael Makuei the information minister announced the decision to the public in a news conference saying it is a move to improve the economic situation in the country.
South Sudan despite having gained independence from Sudan, have been in constant wars which led to mismanagement of funds. This resulted to an economic crisis in the country. In July, a central bank official announced that South Sudan had run out of foreign exchange reserves and could not stop the pound’s depreciation.
The pound has depreciated rapidly, trading at 510 SSP for $1 on the black market, while the central bank is selling it at 167 SSP.
This country has also faced the effect of the global pandemic COVID-19 with Production of crude oil which is its main revenue source, decreasing to about 165,000 barrels per day, amidst the gradual fall in the global price.
The government said they have formed a committee consisting of the head of commercial banks who are working together with the central bank to formulate clear economic guidelines.
The South Sudan government has however not given an official date when the currency will be changed.