A wallet filled with South Sudanese Pounds.

JUBA, South Sudan (Eye Radio) – A prominent economist has joined growing calls for the government to introduce higher-denomination currency notes, as the South Sudanese Pound (SSP) continues to lose purchasing power against a backdrop of rising inflation.

Currently, the 1,000 SSP note is the highest denomination in circulation. However, with the steady depreciation of the local currency, economists argue that the note has become insufficient for routine market transactions.

Speaking to the media on Monday, economist Stephen Ihude noted that the current currency structure is no longer aligned with market realities.

He observed that citizens are now forced to carry “bulky volumes” of cash for even the most basic purchases.

“Printing a larger denomination is in line with inflation trends and would help avoid carrying bulky notes that have lost their value,” Ihude stated.

He pointed out that smaller denominations like the one, two, or five-pound notes have essentially become obsolete.

“There are no prices for those levels anymore; most goods are priced in higher denominations. Introducing larger notes would align better with current prices and is therefore reasonable.”

Despite supporting the move, Ihude warned that printing larger notes is a “temporary measure” and not a solution to South Sudan’s deeper economic woes.

He cautioned that such a move could inadvertently fuel further inflation if not managed carefully, as prices remain volatile rather than stagnant.

Beyond the physical size of the notes, Ihude addressed the persistent liquidity crisis, which he attributed to poor circulation within the formal banking system.

He explained that cash is not moving effectively through banks, largely because of strict withdrawal limits and a lack of incentives for the public to deposit their money. This has created a lack of confidence in the banking sector, leading to a shortage of physical currency in the market.

“Stabilizing the South Sudanese pound requires a mixed approach,” Ihude stressed. He called for a combination of robust monetary and fiscal policies alongside comprehensive banking reforms to restore public trust.

Addressing the recent relative stability in the exchange rate, the economist argued that it was the result of “artificially created scarcity” rather than a genuine improvement in the pound’s value.

He urged the government to focus on long-term reforms rather than relying on temporary currency adjustments to manage the economy.