South Sudan’s central bank unveils monetary strategy to contain inflation

February 11, 2024 (JUBA) – South Sudan’s central bank has unveiled a monetary strategy aimed at controlling inflation in the country, directing retailers in the exchange market to legalize their activities.

South Sudan’s Governor of the central bank, James Alic Garang explains in a brief that the decision does not limit their operations in specific locations in the country but permits to legalize activities of the retailers in the money exchange market so that the government would be able to harmonize its approach to handling and addressing inflation.

“We are encouraging them to move to the next phase, which is get registered, find shops, operate formally,” said Garang. The governor said the law of the country does not permit trading in money on the parallel market.  “Let me just foretell what is going to come, we have the laws of the land no one will be allowed to sell on the street”, explained Garang.

The governor argues that his approach to tightening restrictions on informal foreign exchange dealers will lead to the criminalization of black-market dealers who would resist.

He encouraged the forex dealers to legalize their businesses and follow the guidelines that have been provided by the bank.

In December, the central bank instructed all informal forex dealers to form umbrella associations or organize themselves into structured groups.  They were also directed to operate in permanent structures in four designated locations, apply for registration from the central bank and pay taxes to the government.

The overall objective, according to the central bank, is to terminate parallel forex markets, rein in money laundering activities and address the banking sector’s weaknesses.

(ST)