By Bida Elly David
The Bank of South Sudan has made an absolute step to introduce a banking payment system aimed at mitigating difficulties of salary delays as well as facilitating financial transactions of customers and commercial banks.
This technological tutorial arose during the launch of Information communication technology initiative under the theme ‘connecting South Sudan’.
Central Bank is a national bank that is concerned in safeguarding, printing and maintaining the security of the Country’s currency. It plays role in facilitating transactions of all commercial banks across the Country.
Bank of South Sudan (BOSS) is the only bank that comes up with necessary monetary instruments for controlling the circulation of domestic and foreign currencies in the money market.
The government of South Sudan especially the ministries still use manual payroll system for executing remuneration policies. The manual system has so far been contributing delays in payment of salaries for civil servants and the army.
Recently, the Central Bank auctioned certain amount of United States Dollars to commercial banks and forex bureaus as a mechanism to strengthen the local currency as well as fight inflation. Despite number of trials made, the market remained shaken as it could not reach equilibrium level.
Speaking during the event this week, Akoon David Saba Al Ker, a representative of Central bank said that citizens face difficulties of depositing and carrying cheques to commercial banks and later bringing them to the Central Bank taking long processes.
He said that the payment system would aid the government towards settling debts, clearing staff salaries through electronic deposits without costing ample time for transactions.
“We are modernizing a national payment system for South Sudan to settle critical payment problems and minimizing low values. The system would work on the implementation and settlement of government securities to improve information and functionality for participants” he said.
Furthermore, Akoon underscored that the payment system would also compose of primary and secondary market trading electronic control system where all business financial settlements would be initiated.
“Citizens carry cheques to commercial banks. They carry the bank cheques to commercial banks later on going to the Central but this time Cheques will be cashed in their offices and it will be the role of the Central Bank to do the rest of the processes. We will also have instant fund transfer which will be for twenty-four hours” he said.
Akoon noted that the forex bureaus and commercial banks will undertake a stock exchange system while government shall use the treasury system for cash transfers to avoid accumulation of salary arrears.
However, he added that financial institutions such as the revenue authority, ministry of finance shall have the system for controlling all necessary financial transactions such as employees’ salary transfers among others.
He stated that as soon as they avail the system, all necessary execution for the initiatives would commence without delays. He urged commercial institutions such as the banks and others to cooperate with the Central bank towards the meeting project.