Trust Deficit Weakens Cash Circulation
South Sudan’s liquidity pinch has deepened, according to parliamentary finance chair Michael Ayuen, who links the shortage of banknotes to weakening confidence between commercial lenders and the Bank of South Sudan.
Ayuen says some banks hesitate to lodge reserves at the central bank, fearing delayed access to their own funds when clients demand withdrawals, a hesitation he describes as “a deficit of trust.”
Hoarding Magnifies Market Stress
The mistrust spills into the streets as households and traders stash notes at home, draining vaults and automated tellers across Juba.
High-value denominations, especially 1,000-pound bills, now trade like merchandise because importers hunt for dollars, further thinning local currency supplies and nudging prices upward.
Local Production as a Pressure Valve
Ayuen urges a pivot toward domestic agriculture, arguing that home-grown staples would curb imports, shrink demand for hard currency and let available notes circulate longer.
“If we produce our own food, the chase for dollars will cool,” he told Eye Radio, framing farming as a monetary as well as nutritional remedy.
Digital Payments Gain Official Backing
The finance ministry and the central bank recently promoted mobile and card transactions, hoping to relieve cash queues and modernise the payment ecosystem.
Analysts note that wider digital uptake could rebuild confidence in formal channels, provided network coverage improves and fee structures remain transparent.