John Ohisa Damian, Governor of the Central Bank. Courtesy.

The Bank of South Sudan has banned foreign currencies for local payments in the country.

The Bank governor on Jannuary 17, 2022, has written to government agencies, financial institutions, non-governmental organizations, private businesses and the public about the directive.

The move came after the institutions found out that some government agencies and organizations were using foreign currencies for local payments.

Johnny Ohisa Damian added that the Bank has found out foreign currencies were also being used in the government, some hotels, restaurants, and renting of properties among others in the country.

“It has come to the notice o the Bank of South Sudan that some government and financial Institutions, non-governmental organizations, civil society organizations, hotel industry, travel agencies commercial outlets, restaurants service entertainment industries and private business.”

According to Ohisa, the dealings in foreign currency has undermined and threaten to erode public confidence in the South Sudanese Pounds, which is the country’s legal tender.

“This is unacceptable practice has fundamentally undermined and threatened to erode public confidence in SSP as a legal tender and must be entirely discouraged.”

The  Bank of South Sudan says it will adopt measures including pricing for all goods and services in South Sudanese Pounds.

It will also assess and impose mandatory payments in SSP to public accounts and compulsory accounts. By mandatory payments, the bank refers to any payment made to or by public utility under a contract or any other voluntary transaction including taxes, customs duties, exercise, levies fees, charges or penalties.

Ohisa has warned that refusal to adhere to the circular is punishable by law.