a month ago 1 min read

Government of South Sudan Prohibits Transactions in US Dollars


South Sudan's Financial Collapse

According to a source, the government of Salva Kiir Mayardit has barred transactions based in U.S. dollars as part of efforts to revive South Sudan's war-devastated economy. According to reports, the government ordered that all local payments be made in South Sudan pounds rather than dollars (SSP).

The South Sudanese government's action will probably have a severe effect on importers' and regional banks' business operations there, according to an article in The East African.

Slava Kiir's administration had established a committee tasked with making recommendations for ways to revive South Sudan's hyperinflation-stricken economy before outlawing dollar transactions. The committee was present, yet South Sudan nonetheless had its greatest economic collapse in 2022. Up to 7 million people living in South Sudan are currently suffering catastrophic food shortages and the threat imminent hunger as a result of this and the country's crippling hyperinflation.

The South Sudanese government has stated that it wants all signed commercial contracts to be based on the local currency in addition to prohibiting transactions in dollars.

Michael Makuei Lueth, the country’s information minister, reportedly said:

“That is a clear directive from the Central Bank that all the transactions in South Sudan must be done in our currency. So all commercial contracts must be signed in our local currency.”

South Sudan is one of Africa's poorest and least stable nations despite having the greatest known deposits of crude oil in Sub-Saharan Africa due to the civil war and ongoing violent battles between various groups.

Great! You’ve successfully signed up.
Welcome back! You've successfully signed in.
You've successfully subscribed to Coin Aquarium.
Your link has expired.
Success! Check your email for magic link to sign-in.
Success! Your billing info has been updated.
Your billing was not updated.