INTRODUCTION OF SSP1000 BANKNOTES INTO CIRCULATION
Hon. Dier Tong Ngor
Governor of Bank of South Sudan
February 4th, 2021
Members of the Board of Directors of Bank of South Sudan;
MDs of Banks;
All the Media Houses
Invited Guests, ladies and Gentlemen;
- We have an important announcement to make. We call you to inform you that the Bank of South Sudan is introducing a new higher denomination banknote of SSP 1000.
- As you are aware, the past few years have been characterized by high inflation, and the perpetual depreciation of the currency has eroded the face value of our banknotes.
- Bank of South Sudan carries out a review of the denomination mix from time to time to ensure that the available denomination mixes are aligned with macroeconomic conditions and demand. International best practices require central banks to review their currency regimes at intervals of between five (5) and ten (10) years to ensure that demand for banknotes is well aligned with economic activity, address weaknesses and challenges associated with the management of notes and coins in circulation, assess the non-usage of a particular series to ensure efficiency in printing, and address technological innovations that impact the usage of currencies.
- Invited media and guests, much thinking went into the decision to introduce the SSP 1000 denomination banknote. In doing this, our aim is to align the structure of the banknote with the needs of the people who use it for their daily transactions. We need banknotes that are convenient, high quality, secure, and cost-effective. Accordingly, in July 2019, the Bank of South Sudan decided to introduce the SSP 1000 after the successful introduction of the SSP 500 banknote in 2018, which indicated a significant increase in the demand for higher denomination banknotes.
- It is in view of the need to make our currency more convenient to use that we are today introducing the SSP 1000 banknote into circulation to complement the existing banknotes, to ensure customer convenience, and bring about efficiency in the printing of currency to generate savings for the country. This new higher value denomination will only partially restore the dollar value of SSP 10 in 2011, but high enough to significantly reduce the deadweight loss and high transaction cost in making high-value purchases in a cash-based economy like South Sudan.
- Ladies and Gentlemen, the introduction of these high-value notes should not be misinterpreted to mean a shift away from the Central Banks policy of promoting the use of electronic modes of payments. While vigorously pursuing financial inclusion by accelerating the migration to e-payment platforms, we are also mindful of the relevance of cash in our day-to-day dealings. Undeniably, cash still remains ‘King’ and a preferred medium of payment by the large informal sector in the country. This is why we continue to pay attention to enhancements in the structure, security features, and management of cash within the economy.
- In the coming days, the Bank of South Sudan will embark on a nationwide campaign to educate the general public on the key security features of the new denominations. I urge all of us, particularly the media, to enlighten our people about the SSP 1000 banknote features to facilitate the detection of fake currency notes. The need to properly handle our banknotes is still of significant importance, and we must strive to keep them clean at all times in line with the Bank’s Clean Note Policy.
- Ladies and Gentlemen, our Currency Department will engage the media after the launch to further share some of the new banknote features of SSP 1000.
- With these few remarks, I now declare the new denomination of SSP 1000 banknote formally launched.
- Thank you very much for your attention.
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