Central Bank gate. | File/Courtesy.

The Bank of South Sudan has introduced measures to encourage South Sudanese to deposit their money in the existing banks in the country instead of keeping cash in their houses.

This comes as the South Sudan’s pound currency weakens drastically against the United States dollar, triggering a sharp increase in commodity prices across the country.

Central Bank Director for Communication and Public Relation, Majok Nicodemus, said 80 percent of the banknotes in South Sudan sits outside the banking system.

Nicodemus said the situation “presents a tremendous challenge” for the Bank to conduct its monetary policy. In a press statement, the Bank announced several measures against to stop the hoarding practice.

“Members of the public, commercial outlets and private businesses should use banking sector for cash deposits and should refrain from cash hoarding,” Nicodemus said.

He also directed commercial banks to create a conducive environment that will encourage the public to be interested in depositing their cash with them.

The bank directive also encourages members of the public and small businesses to use licensed digital monetary platforms to transact and make payment.

“The bank is also coordinating with law enforcement agencies in identifying hoarders, their spots and take appropriate measures to discourage such behavior.”

As of Tuesday, March 12, 2024, one United States dollar was trading at an average of 1,596 South Sudanese pounds, and nearly 2,000 pounds in the parallel market.

The country has lately been hit by economic hardships that have left the government struggling to pay civil servants salaries, as the public workforce goes for months without its dues.

The situation has been blamed on dwindling revenue due to the impact of the war in Sudan and the Red Sea blockade on the country’s previous oil export.