By Alan Clement
The Bank of South Sudan (BoSS) has backtracked on recent revelations to print more South Sudanese Pounds (SSP) as a remedy to the liquidity crisis in the country.
On Monday South Sudan Broadcasting Corporation, (SSBC) quoted the governor of the Bank of South Sudan (BoSS), Addis Ababa Othow, saying the government proposed printing more notes.
“In the short-term plans, we have made it very clear that there is a need, an urgent need for us to print money just to meet the high demand right now for liquidity,” Dr. Othow’s voice clips sounded.
However, when other media outlets picked up the matter, it received sharp public criticism, prompting the Central Bank to make a U-turn.
On Wednesday, Central Bank’s Director of Communication and Public Relations, Majok Nikodemo Arou, issued a statement, that the governor’s remark was taken out of context.
In the press release, the BoSS distanced itself from the plan of printing more banknotes.
“It is important to note that the Bank of South Sudan does not have the authority to print money for the purpose of paying civil servants or members of the organized forces,” Nikodemo stated.
“We want to assure the public that the Bank of South Sudan has no plans to print additional money for salary payments.” The statement partly read
Meanwhile, in an interview with this outlet, Dr. Ruben Moyi, Director of Marketing at Ivory Bank, said printing more money is not a viable solution to liquidity crises.
Moyi recommended alternative measures such as recalling outdated notes and requiring citizens to remit them to the banking system within a set period.
“If remitted properly, this would force cash back into circulation and avoid inflation caused by reckless printing,” he said.