Economist warns new currency denomination will encourage theft, hoarding

JUBA – A South Sudan economists on Wednesday warned that the introduction of SSP1000 denomination will encourage theft, and hoarding of money in the country.

“Huge banknotes encourage theft and hoarding  of money because you can just keep bundles of million, put it in your pocket and nobody will know, but if they are small banknotes, the way you will carry it will even alert anybody who is there, and it will be very difficult for people to carry away money or to hoard money,” said Abraham Matoc Vice-Chancellor at Dr. John Garang Memorial University in Jonglei State in interview with Sudans Post in Juba.

The Central Bank of South Sudan on Tuesday launched SSP1000 banknote, arguing it will strengthen the value of pounds against the U.S dollar, minimize the printing costs and end storage space problems.

Professor Matoc said the introduction of this huge banknote will drastically weaken the value of the pound against the U.S dollar.

“But in general, printing 1000 banknotes, even 500 banknotes, I am very uncomfortable with it because it is an indication of devaluing our currency and it the currency is devaluated, the currency becomes weak and the will affect the economy and that economy will be faced with a decline  and people will take off hyper-inflation but in developing economies, we don’t expect hyper-inflation,” he said.

He disclosed that the central bank should have created more awareness first before introducing new banknotes.

“The first should have been done that is to say awareness building. The public would have been informed through newspapers, through radios, through TVs and etc. and even the type of banknotes should have been put everywhere so that people are aware of it to avoid counterfeiting fake type of money,” Matoc said.