Central Bank Governor Dr. Alic Garang speaks at a press conference in Juba. (BOSS/Facebook)

The Governor of the Bank of South Sudan on Saturday announced a set of comprehensive reform agenda to boost the financial stability including crackdown on street dollar sellers amid tottering exchange rate.

Dr. James Alic Garang made the inaugural public policy statement two months after his appointment as the Central Bank governor by President Kiir on October 2, 2023.

Addressing a joint press conference organized by both the Bank and the Ministry of Finance, Dr. Garang unveiled his war against the economic crisis, anchored on four pillars.

These include transparency and accountability, exercising the Central Bank’s autonomy and independence, and strategies to strengthen the monetary policy framework to ensure price stability.

According to the governor, the four pillars will revolve around the vision of economic transformation agenda and strengthening of the central bank mandate to achieve price stability.

He added that his administration will pursue a strong monetary policy framework to foster health competition and resource allocation.

“The Bank of South Sudan plans to pursue a strong monetary policy framework. This calls for strategic approach to working with the key stakeholders in the economy,” Dr Garang said.

“This is to foster healthy competition and resources allocation, to pursue activity that lead to high productivity and economic growth, to reduce distortion on foreign exchange markets and make prudent investment decision, and to ensure a sound and more efficient financial system.”

The governor said the bank will adopt and implement plans to promote financial inclusion and digitization to harness innovation and technology. These, he says, will encourage commercial banks to expand access to the bottom of the pyramid.

The Bank will also pursue the goal of maintaining stronger macroeconomic stability to tame inflation and stabilize the South Sudanese currency, Garang said.

Dr. Garang said the Bank will adopt a price-based monetary policy instead of the reserve monetary policy currently on display and align the country’s banking system with those of the East Africa community protocols, which are all for harmonizing the monetary policies of member states.

He further pledged to streamline the foreign exchange market by encouraging informal money exchangers to join the formal trading market by legalizing their operation through registration.

“This will be implemented through coordination with relevant authorities as these informal outlets get regulated and officially licensed to transact in the foreign exchange market.”

Dr. Garang said the bank will not allow traders to sell dollars in the open market.

“Going forward, the law enforcement agencies will discharge their immediate responsibilities to tame any non-compliance practices including by ensuring that no one sells dollars in the open, or under trees without an appropriate license to engage in FX trading,” he said.

Other vital areas the bank will pursue include implementing the national payment system, supporting economic development and agriculture, and coordinating with the fiscal authorities, he said.