A member of parliament from Yei has called on the National Legislative Assembly to investigate policies governing the issuance of Letters of Credit in South Sudan, owing to the shortage of dollars in the markets. Meanwhile, the opposition leader in parliament is calling for the removal of the central bank governor.

MP Moses Bidali, representing a constituency in Yei, raised a motion saying the letters of credit have not addressed the dollar shortages in the markets as anticipated. He and other legislators are reportedly concerned that dollars availed by means of these letters end up in the black market, resulting further devaluation of the local currency.

Radio Miraya reported yesterday that parliament’s committees of economic, public accounts, commerce and security have been tasked with reviewing the system and reporting back to the parliament in five days.

Meanwhile, the opposition leader in the parliament Onyoti Adigo criticized the central bank for failing to regulate commercial banks and other financial institutions that have access to dollars yet do not make them available to consumers at the official rate.

“The whole issue is the failure of the central bank because they are lacking regulation guiding the hard currencies also the ministry of commerce and trade is lacking regulation controlling the market itself so they go the market seeing the thing and they don’t take action,” he said on Radio Miraya.

He also called for a new governor of the Bank of South Sudan, the institution governing the country's monetary policy. “I think if you need really to save this country you have to start with the Central Bank that there is a need to make a motion that the governor should go away so that there is a new man that will direct us properly.”

File photo: Bank of South Sudan Governor Kornelio Koriom

Related:

IMF: South Sudan currency policy enables 'hidden transfer of resources' (3 May)