Bank of South Sudan to regulate money transfer businesses

South Sudan’s central bank has announced a plan to regularize forex in the country in an effort to try and stabilize the economy. The country is plagued by hyperinflation due to many years of civil war.

The country’s apex bank now says it wants to regulate forex and money transfer businesses across the country in order to obtain data to help make informed decisions and also ensure that those in the businesses of forex and money transfer pay taxes.

The Governor of the Bank of South Sudan, James Alic Garang said; “Going forward the bank of South Sudan will coordinate with other regular stakeholders to organize the informal market, especially the umbrella informal market, who currently do sell hard currency outside the purview of the central bank.”

Many economists say the biggest challenge to South Sudan’s economy is lack of production due to long years of civil war and lack of hard currency to facilitate import of goods.

Over the years – South Sudan has turned to the International Monetary Fund for help – The lender injecting more than $500 million which has helped the central bank to bring the value of the pound on the parallel market closer to the official rate.

Many businesses face a challenge of getting hard currency

Viola Malka is a business woman in South Sudan’s capital Juba. Viola imports clothes from Uganda, Kenya and Turkey in Europe. She says she is always looking for the US Dollars to buy her products. 

Viola Malka, a business woman in Juba

“The dollar is very expensive. If the dollar is at the current rate, how will we buy goods then? Customers do come to purchase goods but they complain about high prices, my business is going down because customers say they are expensive.” Said Viola

Viola’s situation is similar to that of many traders and business people here. Many businesses are struggling to keep afloat.

Issac Oyula is a tailer in Munuki, he says his business has been going down

“Business has not been going well due to high prices, compared to 2015 and 2016, things are not good and also the taxes in the market here, taxes are very high.” Said Isaac
Prices of commodities continue to fluctuate and majorly moving upwards

Issac Oyula is a tailer in Munuki,

South Sudan’s government has changed the governors of the bank of South Sudan ten times since the country gained independence twelve years ago to try and fix the economy but inflation is still continuing

The bank of South Sudan says it now has a formula for price stability in the country.
It says it’s giving one month for unregistered foreign exchange business owners to legalize their status.
It says those whose businesses are small and can not meet the requirements for registration should form groups and merge their funds then get legalizedFor business people like Viola Malka the solution to address inflation is not yet in-sight.