Bank of South Sudan headquarters in Jebel, Juba. (Photo: Eye Radio).

President Salva Kiir has instructed the Bank of South Sudan to take decisive measures to restore and stabilize the value of South Sudan pound that has drastically depreciated amid rising inflation.

According to a statement from his office, Kiir issued the directive during the swearing-in ceremony of newly appointed First Deputy Governor of the Bank of South Sudan, Dr. Addis Ababa Othow.

President Kiir has emphasized the need for collaboration among Bank officials to effectively implement the mandate, and expressed confidence in their ability to guide the country’s economy toward recovery.

“What we want is how to bring back the lost currency, see how to correct what has gone wrong. Addis Ababa, I want you to work together with Johnny and to correct what went wrong in the bank,” Kiir said.

South Sudan has been experiencing catastrophic inflation after the Sudan war caused a significant damage to facilities transporting its crude oil to the Red Sea, leaving the national currency weakened against the US dollar.

Civil servants and members of the organized forces have not been paid for more than one year and the government has been struggling to meets its expenditures.

The pound currency depreciated by 70% against the US dollar between January and July 2024 pushing prices to record high and leaving more than 7 million people without enough food, thousands of whom risk starvation, according to the UN humanitarian agency.

As of February 27, the official Bank rate shows that one U.S. dollar traded at an average of 4,448 South Sudan pounds and at 5,500SSP in the parallel market.

On his part, Bank of South Sudan Governor Johnny Ohisa Damian pledged to work together with his First Deputy Dr. Addis Ababa Othow to enhance the institution’s performance.

“We will work together to ensure that we bring the bank to the standard that we would really want,” Ohisa said.

“So, we have a lot of work to do, but I’m very sure that we will be able to fulfil the task that’s required of us. So, we want to take this opportunity to thank you very much for giving us this opportunity to work together once again.”

The Bank of South Sudan is tasked with the responsibility of ensuring price stability and a sound financial system to support sustainable economic growth.