South Sudan official slams illicit sale of dollars

By Ngor Arol Garang

July 28, 2010 (KHARTOUM) — Salvatore Garang, an undersecretary in the regional ministry of finance and economic planning in the semi-autonomous government of Southern Sudan (GoSS) slammed the illicit sale of dollars and warned that any business that is caught dealing locally in US dollar will be dealt with swiftly because the Sudanese pound remains the legal tendering currency.

Garang who gave an interview to Sudan Tribune on Wednesday at Kudu Hotel in Khartoum, called on the public to help expose those insisting on receiving payment in foreign currency for local transactions.

Asked why he is in Khartoum as opposed to his duty station being in Juba, Garang said he is in the capital to follow up on financial matters with the central government.

“I have come for issues connected to finance since you are aware that south Sudan gets its 50% share of oil revenues from the central bank in Khartoum,” he said adding they in the regional government have experienced slowness in receiving the funds allocated for the south since June of this year.

On the illicit sale of dollars in Juba, the GoSS official said that they are seeking cooperation with the public and law enforcement agencies in exposing and dealing with those he termed as outlaws.

“Illicit sale of dollars in open markets in Juba instead of banks is alarming. This is why the region is experiencing circulation of faked notes because there are elements involved in the sale of dollars in black markets,” he said.

“The government needs support from the public and will appreciate getting information that will help on the crackdown of those demanding dollars in local trading,” he added.

However, he clarified that it is not an offence to own foreign currencies in the country.

“Those with dollars and wishing to pay in dollars or any other foreign currency can do so, but nobody should be forced to pay in foreign currency” Garang said.

The deep depreciation of the Sudanese pound has recently sparked heated debate, with economists and observers warning against the indiscriminate use of the dollar in local trading, saying the trend was exposing the region to great economic risks.

Survey findings revealed that people are asked to pay for air-tickets, school fees, hotel accommodation, automobiles, import duty and rent in US dollars. Those unwilling or unable to pay in US dollars are forced to give local currency, based on the seller’s exchange rate of choice.

Since the imposition of U.S. sanctions in 1997, Sudan has often suffered from a shortage of dollars, the main foreign currency used in its economy. That has prompted the central bank in recent years to diversify its reserves away from the dollar.

In 2007, it began restricting foreign currency transactions at exchange bureaux for Sudanese, hoping to bring more hard currency back into the banking system.

Khartoum’s foreign reserves have come under pressure as the central bank has spent reserves to keep the Sudanese pound strong during the global financial crisis.

(ST)