The decision was made during an ordinary meeting chaired by Vice President and Chairperson of the Economic Cluster, James Wani Igga, in Juba on Friday.
For months, customers have queued outside banks for hours, only to withdraw SSP 50,000 or SSP 100,000, regardless of how much money they have in their accounts.
The cash liquidity crisis has left many people frustrated and weakened public confidence in the banking sector, with some choosing to keep their money outside banks.
According to a statement issued after the meeting, the cluster “resolved to lift restrictions on withdrawal limits imposed on the public by commercial banks.”
It also directed “the Ministry of Finance and Planning and the Central Bank of South Sudan to implement the resolution and develop better strategies to address financial challenges in the country.”
The meeting also agreed to enforce the Council of Ministers’ decision on non-statutory tax exemptions.
The statement said the cluster viewed such exemptions as “detrimental to the economy, especially in terms of non-oil revenue collection.”
The cluster further approved the formation of an Inter-Agency Economic Reform Task Force, headed by the Ministry of Finance and Planning, to review strategies proposed by the Economic Cluster.
Speaking after the meeting, the Cluster’s spokesperson and Deputy Minister of Agriculture and Food Security, Lily Albino Akol, said “the resolutions aimed to address financial challenges in the country.”
She added that the resolutions “will be forwarded to the Council of Ministers for further deliberation and approval.”
The announcement comes as South Sudan continues to face high inflation, a shortage of foreign currency and persistent cash shortages, leaving many bank customers questioning the value of keeping their savings in the banking system.
