Africa-Press – South-Sudan. The Governor of the Bank of South Sudan has disclosed an urgent plan to print more currency to address the ongoing liquidity crisis affecting government salary payments.
Dr. Addis Ababa Othow revealed this before the Finance and Economic Planning Committee of the Transitional National Legislative Assembly in Juba yesterday.
He stated that, in the short term, the move is aimed at meeting the current high demand for liquidity.
Dr. Othow , however, said the financial institution is also exploring medium- and long-term strategies to tackle the issue sustainably.
A special committee, headed by the First Deputy Governor, has been formed to explore lasting solutions for cash and currency management.
He also mentioned that the central bank is leading efforts to develop a new National Payment Strategy.
“In the short-term plans, we have made it very clear that there is an urgent need for us to print money just to meet the high demand for liquidity. But in the medium and long term, we are looking at how to address the issue of currency management,” he said.
Dr Othow, who spoke on the state-run SSBC on Monday added: “We have already formed a committee, headed by the First Deputy Governor, to look into a sustainable, long-lasting solution for cash management. At the same time, the bank is now championing what we call the National Payment Strategy.”
Meanwhile, Michael Ayuen, Chairperson of the Finance Committee, confirmed that a range of policy options is being explored.
He said a committee is currently researching best practices both regionally and globally to generate recommendations that will guide the way forward.
“We were able to explain to the committee a range of ways to address this situation, including policy measures. A committee is already working on researching the best practices around the region and the world, and will generate recommendations that will form the basis for the way forward,” he said.
The discussions come amid growing concerns over delayed salary payments and the weakening of the national currency.
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