Michael Makuei Lueth – The Commerce Africa https://thecommerceafrica.com African Reneissance Sun, 18 Oct 2020 13:27:04 +0000 en-US hourly 1 https://wordpress.org/?v=5.9 South Sudan’s Govt Shelves Plan to Change Currency https://thecommerceafrica.com/south-sudans-govt-shelves-plan-to-change-currency/ https://thecommerceafrica.com/south-sudans-govt-shelves-plan-to-change-currency/#respond Sun, 18 Oct 2020 13:27:02 +0000 http://thecommerceafrica.com/?p=2347 The government of South Sudan has finally discarded its plan to change the local currency. The information was reported this week by the Information Minister Michael Makuei Lueth.

“The change of the national currency was proposed at the previous cabinet meeting as one of the long-term economic measures, but it was not accepted and adopted by the council,” the minister said. When the plan was decided, it was aimed at countering the economic crisis the country is going through and the increasingly worrying depreciation of its national currency.

According to Michael Makuei Lueth, this situation is due to a growing trend of hoarding observed among the population combined with a fall in oil prices which has reduced the country’s income and led to a depreciation of the SSP.

“Most citizens hold money at home, fearing that their money will be confiscated when they deposit it in the bank. The government has therefore decided to change the currency,” he said at the time.

However, the official reassured that authorities remain committed to stabilizing the economy of the youngest African state. In that regard, a loan agreement whose details have not yet been disclosed should soon be concluded to support economic reforms.

(Ecofin Agency)

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South Sudan Govt Mulls Abandoning Local Currency for USD https://thecommerceafrica.com/south-sudan-govt-considers-abandoning-local-currency-for-usd/ https://thecommerceafrica.com/south-sudan-govt-considers-abandoning-local-currency-for-usd/#respond Tue, 13 Oct 2020 07:34:29 +0000 http://thecommerceafrica.com/?p=2289 The South Sudanese government is considering abandoning the local currency, the South Sudanese Pound, to better cope with the current economic crisis and the depreciation of the currency. The information was reported on October 9 by Michael Makuei Lueth, the minister of information and broadcasting.

The coronavirus pandemic has led to a drastic drop in oil prices, therefore dropping the country’s revenues. Also, currently, $1 is SSP510 on the black market, while the official rate is SSP167 for a dollar.

Authorities said this situation is due to an increasing trend of hoarding observed among the population. “Most citizens hold money at home, fearing that their money will be confiscated when they deposit it in the bank. The government has therefore decided to change the currency,” said Minister Lueth.

This decision comes in a particular context for the southern Sudanese economy, shattered by several years of civil war, which the government of President Salva Kiir has been trying to reform for several months. In mid-September, Salvatore Garang Mabiordit Wol, the former Minister of Finance, was dismissed and replaced by Athian Diing.

“The current currency will be changed and if at some point it is no longer in use, the one you have will be just a piece of paper,” warned Minister Lueth, urging the population to “hurry to the bank to avoid queuing up when the time comes to change the currency.”

(Ecofin Agency)

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