Gov’t warns against currency hoarding amid cash shortage

JUBA – South Sudan’s Minister of Finance and Planning, Athian Ding Athian, on Friday issued a warning to the public, financial institutions, and the business community against hoarding currency.

This followed concerns from some members of the public regarding difficulties they faced when withdrawing money from banks due to cash shortages, prompting calls for urgent reforms to rebuild trust in the banking sector.

Currency hoarding is a deliberate accumulation, withholding, or storage of both foreign and local currency in excessive quantities outside the banking system, with the intent to create scarcity, influence exchange rates, or engage in speculative trading.

In a statement from the office of the president, Minister Athian appealed to the public to avoid engaging in currency hoarding and to report any known cases of hoarding to law enforcement agencies.

“The meeting warned people against hoarding the local currency. This is prohibited by law, urging law enforcement agencies to play a role in curbing such activities that affect the flow of cash in the system,” a statement shared on the Facebook page of the Office of the President said on Friday.

Athian said they briefed the president on the mechanism to address macroeconomic stability and physical coordination, including fiscal and monetary policies.

“The meeting addressed macroeconomic stability and physical coordination and provided an update to the President on the ongoing engagements between the Ministry of Finance and the Bank of South Sudan in areas of fiscal and monetary policies,” he said.

He said the meeting focused on liquidity coordination and transparency, public financial management, and an initiative to strengthen liquidity control and stabilize the foreign exchange market while preserving the local currency.

He stated that they are developing procedures to stabilize the economy by implementing initiatives designed to restore public trust in banking institutions.

The minister announced that the payment to civil servants has been completed and that members of the armed forces and those in remote areas will receive their salaries in cash.

Approximately a month and a half ago, a Member of Parliament in the national legislative assembly stated that South Sudanese pounds are reportedly in circulation in the Darfur regions controlled by the Rapid Support Forces.

The lawmaker further mentioned that due to a cash shortage, South Sudanese citizens are waiting in line for traders to deposit cash before commercial banks disburse payments to civil servants, often in amounts of SSP 100,000 or SSP 50,000.

A high-level meeting convened by President Salva Kiir Mayardit with members of the Economic Cluster discussed ways to address the current economic crisis.

A high-level meeting was attended by Dr. Benjamin Bol Mel, Vice President and Chair of the Economic Cluster, Minister of Finance Athian Ding Athian, Dr. Addis Ababa Othow, Governor of the Central Bank, and Simon Akuei Deng, Commissioner General of the National Revenue Authority.