President Kiir Grants Financial Independence to South Sudan’s Central Bank

South Sudan President Salva Kiir has taken a significant step towards ensuring the independence of the Central Bank, aiming to shield it from political interference and enhance its control over foreign exchange rates and inflation.

The directive, announced on state-owned television (SSBC) on Thursday, is part of efforts to implement the 2018 peace agreement’s provisions on economic reforms and the bank’s independence in monetary policies.

The move is also considered an implementation of the 2023 Bank Act, which grants the bank autonomy to execute its statutory and supervision functions without seeking directives from the Finance ministry or the president’s office.

According to Article 182 (8) and section (7) of the Bank of South Sudan Act, amended in 2023, the bank shall be independent in its statutory and supervisory functions, free from interference from other government institutions and individuals.

The bank’s mandate includes independently exercising powers and functions to promote domestic price stability, currency issuance, regulation of financial sectors, managing official exchange reserves, and implementing its recruitment policy.

President Kiir has directed the bank’s leadership to work with other financial institutions and individuals to implement the order without fail, ensuring the bank’s independence is upheld.

South Sudan is currently struggling with high inflation, exacerbated by soaring consumer prices and a short supply of goods and services in the market.

The foreign exchange market has also been severely impacted, with a sharp decline in the value of the South Sudan Pound against the rising value of foreign currency, dominated by the US dollar.

This rise in foreign exchange rates and the fall in the value of the local currency has stoked tensions and fears of a potential uprising against the transitional government due to the rising cost of living.

By granting the Central Bank independence, President Kiir aims to address these economic challenges and ensure the bank can effectively implement monetary policies to stabilize the economy.