The Bank of South Sudan (BOSS) has directed law enforcement
agencies to track down people it believes are keeping money in the houses
instead of banking it.
In a public notice issued on Tuesday, the central bank says
over 80% of cash in South Sudan circulates outside the Banking System - a
practice it says presents tremendous challenges on the conduct of monetary
policy.
“Members of public, commercial outlets, and private
businesses should use banking sector for cash deposits and refrain from
hoarding currency or keeping it outside the banking sector,” Majok Nikodemo
Arou, director for Communications and Public Relations, said in a statement.
“Statistics indicates that over 80 percent of currency in
circulation sits outside the banking.”
The bank encourages members of public and small businesses
to use licensed digital money platforms such as mobile money operators to make
payments.
“The Bank is also coordinating activities with the law
enforcement agencies to identify currency hoarders, their spots, and take
appropriate measures to discourage such behavior,” Nikodemo states.
“City Council authorities shall exercise their mandate while
cooperating with the Bank in enforcing these directives, with immediate
effect.”
The bank also directs commercial banks to create conducive
environment and polices to ease and allow the public accept banking system as
it plans to carryout continuous sensitization to public and businesses for
smooth implementation of monetary policy and price stability.
South Sudan is currently experiencing high inflation with
the local currency losing value against the hard currency on daily basis.
As of 12 March, $1 sells at 1,620 South Sudanese pounds at
the central bank while it ranges from 1,800 to 2,000 in the black market.
In addition, the prices of essentials items have skyrocketed
in the market, prompting the bank to try hard to stabilize the situation.
Tracking down of cash in the houses, banning of currency exchange on the streets, and supply of subsidized food items are some of the measures the government is taking in a bid to tame the situation.
The statement does not give further details on what the bank will do with impounded cash.
