The new governor of the Bank of South Sudan, Johnny Ohisa Damian, on Friday, issued a directive stopping the Ten Million South Sudanese Pounds (SSP 10,000,000) cash withdrawal limits by clients from individual accounts in commercial banks.
According to the finance ministry, there has been a scarcity of local currency bills in circulation because people are hoarding cash due to diminished trust in commercial banks.
According to a Friday press statement signed by the Central Bank governor, the management of the Bank of South Sudan convened a consultative meeting with managing directors of commercial banks on Thursday 12 December 2024 to find amicable solutions to resolve the current liquidity challenges facing the banking sector and the public in general. The meeting also discussed avenues to address the general macroeconomic challenges facing the country.
“Specifically, the meeting noted with concern the public hoarding of cash without depositing into the banks due to mistrust in the banking sector. In a joint statement, the Central Bank and commercial banks resolved to work together in resolving this matter. The Central Bank Governor gave directives to lift Ten Million South Sudanese Pounds (SSP 10,000,000) cash withdrawal limits by a client from individual accounts,” the statement reads in part. “The Bank of South Sudan and the commercial banks reaffirmed their commitment to rebuilding trust between the Central Bank and commercial banks on one hand and the public on the other hand. This new collaborative approach is expected to strengthen working relationships among the country’s banking and financial sectors.”
“To further strengthen public confidence in the banking system, the Central Bank has resolved to encourage commercial banks to offer interest in savings accounts. This initiative aims to incentivize customers to deposit more money into their savings accounts,” the statement added.
The new Bank of South Sudan management reiterated its commitment to achieving the Bank’s mandate to ensure price stability and remains steadfast in its mission to ensure a stable, efficient, and trust-driven banking system for the benefit of stabilizing the economy.
On Monday night, President Salva Kiir fired Garang Alic as Governor of the Bank of South Sudan (BOSS) and appointed Johnny Ohisa Damian, who served in the position before, in his place.