Africa-Press – South-Sudan. JUBA, SEPTEMBER 26, 2023 (SUDANS POST) – South Sudan’s transitional parliament on Monday passed a bill that would replace the country’s currency, South Sudanese Pound, with a new currency to be called the South Sudan Pound.
The bill, known as Banking and Other Financial Institutions Bill 2023, was presented to the parliament by the chairperson of parliamentary committee on finance and economic planning Changkuoth Bichiok Reth.
Changkuoth said that the change is necessary to assert South Sudan’s sovereignty and to create a currency that is unique to the country.
“In all countries, the money belongs to the country and is named after the country which people belong to,” he said. “So, the money should be called the South Sudan Pound.”
Addis Ababa Othwo, deputy governor of the central bank agreed with Changkuoth, saying the change is in line with international best practices.
“The practice in the region when it comes to currency is to name the currency after the country,” he said. “In Kenya, they call it Kenya Shillings and in Uganda, they call it Uganda Shillings that is why we are changing it from South Sudanese Pounds to South Sudan Pounds.”
However, some lawmakers objected to the change, arguing that it is unnecessary and that it could lead to confusion.
Charles Majak, a member of the ruling SPLM representing Warrap State in the parliament said that the currency belongs to the people, not the country.
“When this bill was brought for the second reading I objected to the amendment of South Sudanese Pound to South Sudan Pound and I said this word Sudanese is used for possession because money is a medium of exchange otherwise, we have what we call barter trade,” he said.
“It is the people who possess those resources in the form of money. Why would you delete Sudanese and put Sudan? South Sudan does not own the resources, it is the people who own the resources, and they are living within the international border in a place called South Sudan,” he added.
Despite the objections, the bill is expected to pass through Parliament and become law in the coming weeks. The Bank of South Sudan has not yet announced a timeline for the introduction of the new currency.
The change in currency comes as South Sudan is facing several economic challenges, including high inflation, a shortage of foreign currency, and widespread corruption.
The country is also trying to recover from a deadly civil war that displaced millions of people and left millions more in need of humanitarian assistance.
Some economists have warned that the introduction of a new currency could further destabilize the economy and lead to higher prices.
Others argue that the change is necessary to rebuild public trust in the government and to create a foundation for economic recovery.
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