Gov’t to ‘reform and capacitate’ key financial institutions – Makuei 

JUBA – South Sudan information minister and government spokesman Michael Makuei Lueth has said that the government of President Salva Kiir has resolved to reform key financial institutions, the ministry of finance and the central bank.

This comes following a weekly cabinet meeting on Friday in which the government also resolved that all transactions be made in local currency.

Makuei told reporters following the cabinet meeting that the meeting listened to a report by the ad hoc committee headed by cabinet minister, Martin Elia Lomoro, which recommended that government reform the two institutions.

“The first part talked about measures to reform and strengthen the ministry of finance and planning. Part two deals with measures to reform and capacitate the Bank of South Sudan to combat the main drivers of South Sudan currency depreciation and inflation,” Makuei said.

Makuei also decried the use of dollars by some businesses in the country’s capital, saying this is one of the reasons behind the ongoing depreciation of the local currency.

“Houses are rented, when you go to the landlord he will tell you I want dollars. You want to hire a car, he will say I want dollars. Even the water from the river will soon be sold to us in dollars. If you go to any hotel, you must pay in dollars,” Makuei said.

“All these are problems that are created and this is why this committee has recommended that all the transactions inside South Sudan should be by local currency except for exceptional circumstances like embassies, those going abroad, and so forth,” added.

He said the ministry of finance will make all transactions in local currency compulsory.

“The ministry of finance is to make all payment obligations in local currency because this is one of the major problems,” Makuei said.

“All the contracts that are made, even rental houses, rental cars, rental what, everything here in South Sudan is in hard currency. Why should we use the hard currency at a time when we have our national currency?” He asked.