South Sudan's English Daily Newspaper
"We Dare where others fear"
By Simon Deng
The Community Empowerment for Progress Organization (CEPO) has called on the transitional government of National Unity to replace the current South Sudan pound (SSP) banknotes in order to prevent a cash crunch in the banking system.
Edmund Yakani, CEPO’s Executive Director, urged financial institutions, led by the Economic Cluster, to update the existing SSP banknotes to facilitate quicker financial transactions between banks and spending agencies.
“My appeal to the Economic Cluster and the Minister of Finance is to change the South Sudan Pound (SSP) notes in order to recover the money that citizens and businesses are keeping at home,” Yakani stated on Friday.
“We want to bring to the attention of the Economic Cluster leadership that many civil servants and institutions are now going for two months without receiving the liquid or physical SSP cash that should be paid to them as per the deadline of the 24th of every month,” he added.
Yakani appreciated the efforts of Benjamin Bol Mel, the Vice President and Chairperson of the Economic Cluster, along with the Ministry of Finance and other financial institutions, for their decision to pay salaries on a regular basis.
He revealed that civil servants have not yet received their salaries in their accounts, despite the funds being released. A cheque may be issued to an institution, but the corresponding cash is not available in the bank.
Yakani acknowledged the serious political will and commitment demonstrated by the leadership of the Economic Cluster but noted that the lack of cash in circulation poses a significant financial challenge to the banking system.
He pointed out that the banking system is facing a noticeable contradiction, as spending agencies visit the bank daily to access their funds, only to be told there is no cash available.
“There are many South Sudanese and business people who are keeping physical cash of SSP at home. They have not deposited it in the bank, which has contributed to this particular situation.”
