A Member of Parliament (MP) representing Central Equatoria State in the Transitional National Legislative Assembly (TNLA) has reiterated concern over the continued use of the US dollar as the only currency for business in South Sudan.
Daniel Abucha Ali, a member of the ruling Sudan People’s Liberation Movement (SPLM), said that businesses and private institutions have continued to transact in dollars, in defiance of a government order.
In February this year, the South Sudanese Government, through the Central Bank, suspended the use of the US dollar in both the public and private institutions, and directed that all transactions be conducted in the South Sudanese Pound.
The Central Bank directed the public to pay for all their needs in the local pound. However, the order has not been respected, raising concern from parliamentarians. Entities accused of defying the order include, hotels, private schools and landlords.
Ali said the defiance was causing the continued fall in the value of the South Sudanese Pound.
“I rise to bring to the attention of the august House that late last year; the Governor of Central Bank issued an order, prohibiting the use of dollar as a means of transactions in our local markets. This order, honorable Speaker, has not been implemented,” he said.
“If you go to our schools now, mostly the private ones, they charge in dollars. The same to the hotels.”
The MP called on parliament to ensure that the Central Bank Governor and the Finance minister were questioned on why the order was not being implemented.
“I’m requesting the august House to summon the Central Bank and the minister of Finance to come and clarify exactly what is going on. Why our local orders are not being implemented,” said Ali.
TNLA Speaker Jemma Nunu Kumba commended the lawmaker for raising the issue, and said the question will be posed to the officials on Tuesday when they appear before the august House.
“Already, we have resolved to summon these ministers. So, they have been informed to come here tomorrow to answer some of the questions, including the issues of inflation, oil and so on,” he said.
In February this year, the country’s economy was impacted by the conflict in neighbouring Sudan that led to a decline in oil production. The country is a primary oil producer in East Africa, but its excessive reliance on oil has had negative consequences.