The Council of Ministers has referred concerns over delayed salary payments and broader economic challenges, including weak money circulation in the banking system, to the Economic Cluster for further deliberation.

The decision was made during Friday’s cabinet sitting, where ministers received a briefing from the Minister of Public Service and Human Resource Development, Ezekiel Lol Gatkuoth, on the status of salary payments for civil servants and South Sudan’s diplomatic missions abroad.

The Cabinet also discussed wider economic difficulties, including disruptions in the electronic payment system and concerns over the circulation of the South Sudanese pound within the banking sector, where large volumes of cash remain outside formal financial channels.

Speaking on the state broadcaster SSBC after the meeting, Information Minister and government spokesperson Ateny Wek Ateny said some individuals were hoarding the national currency, treating it as a commodity rather than a medium of exchange.

“Some people are actually storing South Sudan’s pound and they are making it as a commodity… A strong regulatory system should be introduced to ensure that South Sudan’s pound is not kept in large quantities in houses,” he said.

South Sudan continues to face a prolonged cash crunch, with civil servants reportedly unable to withdraw salaries despite have been paid some of their salaries.

The liquidity shortage has been compounded by limited cash availability in banks and difficulties in electronic payment systems.

The Bank of South Sudan previously estimated that a large share of currency in circulation remains outside the formal banking system, urging citizens and businesses to deposit cash in banks to ease liquidity constraints.

Economists say weak confidence in financial institutions, coupled with political uncertainty and banking service challenges, has contributed to widespread cash hoarding.

Public complaints about difficulties withdrawing money from banks have further deepened mistrust in the financial system, reinforcing the tendency to store cash outside formal channels and worsening liquidity shortages in the economy.

The Economic Cluster is expected to review the salary arrears situation alongside broader monetary circulation challenges and submit recommendations to the Council of Ministers, as the government seeks measures to stabilize salary payments and improve liquidity in the banking system.