Southern Sudan plans to ban foreign currencies in circulation

The Bank of southern Sudan has warned of the illegal use of foreign currencies form neighboring countries as it prepares to introduce its own currency, the Pound, early next year.

According to the bank, Sudanese officials are scheduled to visit Uganda and other countries to work out the replacement of foreign currencies in southern Sudan with the Pound.

"The use of foreign currencies is too hazardous to our economy, " said director general of the bank Kornelio Koriom, quoted by Uganda's state-owned New Vision daily on Wednesday.

The Ugandan shilling can freely circulate in southern Sudan, especially in Yei. Other currencies in circulation include the Kenyan Shilling, the Ethiopian Birr, and the old Sudanese Pound.

The efforts to phase out the use of the non-Sudanese currencies are directly linked to plans to introduce the new southern Sudan currency, the Pound, due on January 9.

"We are working tirelessly to make sure that the new currency comes into circulation by that date," said Mathiang Ajing, the manager of Central Bank of Sudan, Khartoum branch.

Juma Walusimbi, Bank of Uganda communications chief said the development was not unusual since southern Sudan is establishing structures to run its own economy, noting the development will not have any adverse effect on the Shilling.

"It is a healthy development especially since southern Sudan has been pacified and has to operate an economy with its own currency that is convertible with that of its neighbors," he said.

Walusimbi was optimistic that the development would not dampen the thriving cross-border trade between the two countries while Ugandans are rushing to southern Sudan for the booming and lucrative market.

Southern Sudan, which was until January 2005 facing a civil war, is trying to revamp its economy after the signing of the comprehensive peace agreement between the government of Sudan and the Sudanese People's Liberation Army (SPLA) in 2005.

Source: Xinhua