NOTHING-Positive in the1000 banknote
By Bullen Bala Alexander
Economists have criticized the decision of the Central Bank for introducing a 1000 banknotesaying there is nothing positive in the newly introduced note since it is not going to change the country’s economic crisis.
On Tuesday, the bank introduced 1000 South Sudanese pound banknote, which the bank officials said it was meant forconvenience characteristics of the currency.
Dr. Abraham Matoch Dhal, an economist and Vice Chancellor of Dr. John Garang Memorial University of Science and Technology said the new one thousand banknote has nothing positive in it since it would only bring a lot of issues.
“I do not see anything positive with the introduction of 1000 banknote, of course it is negative one only nothing positive really, because it is going to encourage hoarding, rampant theft and will only weaken the currency since the small denominations will lose its value automatically,” Dr. Matoch said.
He said the country’s economy is already in crisis and introducing big notes will only make it worse than before adding that it would create problems to low-income earners in the country.
“This is already a big problem among the government employees who are getting less salaries, many of them are getting 1000 SSP and giving someone a 1000 note, he will never feel good,”he stated.
However, the Undersecretary in the Ministry of Investment Dr. Abraham Maliet Mamer who is an economist welcomes the move by the central bank but says the new 1000 banknote is not going to change anything in the inflation in the country.
“What the bank did is to reduce the number of notes in the market but not to reduce inflation in the country because the value of our pounds is dropping more and more, so for you to go to market in this current inflation you may need huge amount or notes this is the only thing that maybe the 1000 was introduced,” Dr. Maliet disclosed.
“So, having big note does not mean anything, to me, can be other things that people are working on. But in terms of economic impacts, it is something bad to the country,” he added.
He said the only thing to address the issue is that people should remit the cash transaction, if South Sudan want to do transaction should be bank to bank and we must go back to cheques business and this is the only thing that can address the issue of cash.
According to Dr. Maliet, the Finance Act of South Sudan allows the governor and Minister of Finance to review from time to time the bank notes.
However, he said to address the issue of inflation in the country, there is need to control or regulate cash in the hands of people adding that the cash in people’s hand is too much and people are not keeping money in the banks.
“What we are seeing now, is that the new 1000 bank notes have already killed the other small notes, so now from 5 pounds to 25pounds has gone and they are completely barred.”
According to him, the introduction of the 1000 is not going to change anything and the prices of commodities will keep on going high and high since the value of small notes becomes more useless.
“Meaning the notes like 5 SSP up to 25 SSP have lost their value already and the only currencies that will be in circulation will start from 100 banknote to 1000 which will never address the issue of inflation in the country,” he added.
According to the commercial bank sources the possibility of circulation of new 1000 banknote to market will probably be next week.