South Sudan will issue higher-yielding paper currencies
The bank said it would issue a 500-pound currency equivalent to USD 1.5 for trading this month.
South Sudan's central bank said on Monday it would issue higher-yielding paper currencies that would allow the country's citizens to carry fewer banknotes as inflation continued and its currency depreciated.
The bank said it would issue a 500-pound currency equivalent to USD 1.5 for trading this month. The highest category currently traded is the 100 pounds.
Southern Sudan's economy is nearing collapse after a failed peace deal with Sudan in 2015 and continued fighting. The conflict has hurt the country's production of crude oil, which lies at less than half of pre-war levels at 245,000 bpd.
"The Bank of Southern Sudan would like to announce to citizens that it will issue a new cash sheet of a denomination of 500 Sudanese pounds as a legal currency in the Republic of South Sudan," Dior Tunaq, governor of the Central Bank of Sudan, said in a statement.
He added that the measure aims to reduce the amount of cash held by citizens.
Inflation has risen sharply for several years, partly due to the devaluation of the local currency, which has lost more than half its value against the dollar since December 2016 on the black market. In March, the annual inflation rate was 161.20 percent, according to the National Bureau of Statistics in southern Sudan.
Inflation averaged 89 percent in the past 10 years, accelerating to its peak in October 2016 at 835.70 percent.
South Sudan gained independence from Sudan in 2011 but slipped in December 2013 in a civil war after a dispute between President Salva Kiir and his former deputy, Rick Machar. As the conflict continues, many of South Sudan's 12 million people struggle to secure enough food.