By Matik Kueth
The Central Bank of South Sudan has entered into a wide-ranging cooperation deal with the Central Bank of the United Arab Emirates (UAE), aiming to stabilize its depreciating monetary system.
The agreement, signed during a high-profile ceremony attended by UAE Minister of State for Foreign Affairs Sheikh Shakhbout bin Nahyan Al Nahyan and South Sudan’s Vice President Benjamin Bol Mel, sets the stage for deeper financial collaboration between the two nations.
A key component of the memorandum of understanding (MoU) includes support for secure banknote printing, an essential process designed to combat currency counterfeiting.
The UAE’s Omlat, a firm linked to its central bank, will lead the production of South Sudanese currency, though it’s still uncertain if this will replace the services of De La Rue, the UK-based company currently responsible for printing South Sudan’s money.
South Sudan has been battling severe inflation and a lack of cash liquidity, with recent reports suggesting plans to increase money supply, a move that many fear could worsen the already fragile economy.
Beyond currency printing, the agreement also involves the modernization of South Sudan’s digital payment systems.
Al Etihad Payments, another UAE financial entity, will oversee the phased development of a domestic payment card infrastructure, potentially broadening financial inclusion in the country.
In addition, South Sudanese financial officials will receive technical training from the Emirates Institute of Finance to build institutional capacity and improve monetary governance.
UAE officials see this partnership as part of a broader initiative to strengthen economic ties with African nations, while South Sudanese authorities view the UAE’s financial expertise as a valuable asset during a time of economic uncertainty.
Although the agreement signals a strategic shift in South Sudan’s financial direction, details regarding its implementation timeline remain unclear.
South Sudan has grappled with economic instability, largely driven by years of civil conflict, overreliance on oil exports, and weak financial institutions.
Its currency, the South Sudanese pound (SSP), has faced ongoing depreciation and inflation pressures.
The country is also struggling with liquidity shortages, and past decisions to print money have been made with warnings from economists about fueling hyperinflation.