South Sudan warns hoarders amid cash crunch and weak banking confidence

JUBA — South Sudan’s Minister of Finance and Planning, Athian Ding Athian, on Friday warned the public, financial institutions, and the business community against currency hoarding, as persistent cash shortages continue to strain public confidence in the country’s fragile banking system.

The warning comes amid growing frustration among citizens who say they are unable to withdraw their own money from commercial banks, fuelling public anger and reinforcing long-standing mistrust in formal financial institutions. The situation has intensified calls for urgent reforms to improve liquidity management, transparency, and coordination between fiscal and monetary authorities.

Currency hoarding refers to the deliberate accumulation and storage of both local and foreign currency outside the banking system, often in large volumes. In South Sudan, economists say the practice has worsened cash scarcity by pulling money out of circulation, limiting banks’ ability to meet withdrawal demands, and encouraging parallel market activity.

In a statement from the Office of the President, Athian urged the public to refrain from hoarding currency and to cooperate with authorities by reporting known cases to law enforcement agencies.

“The meeting warned people against hoarding the local currency. This is prohibited by law, urging law enforcement agencies to play a role in curbing such activities that affect the flow of cash in the system,” a statement shared on the Facebook page of the Office of the President said on Friday.

Athian said the finance ministry briefed President Salva Kiir Mayardit on measures aimed at restoring macroeconomic stability, including coordination between fiscal and monetary policy institutions responsible for managing liquidity.

“The meeting addressed macroeconomic stability and physical coordination and provided an update to the President on the ongoing engagements between the Ministry of Finance and the Bank of South Sudan in areas of fiscal and monetary policies,” he said.

He said discussions focused on liquidity coordination, transparency, and public financial management, as well as initiatives intended to strengthen liquidity control, stabilise the foreign exchange market, and preserve the value of the local currency.

Analysts say the cash crunch reflects not only hoarding but also deep-rooted distrust in South Sudan’s banking sector, where years of currency depreciation, inflation, and inconsistent access to cash have encouraged citizens and businesses to keep money outside banks.

Athian said the government is developing procedures aimed at stabilising the economy by restoring confidence in financial institutions and improving oversight of cash flows.

He said the government has completed salary payments for civil servants, while members of the armed forces and employees in remote areas will continue to receive salaries in cash, highlighting the state’s continued reliance on physical currency despite recent digital finance initiatives.

The cash shortage has also been linked to regional leakages. About six weeks ago, a Member of Parliament in the national legislature said South Sudanese pounds were reportedly circulating in parts of Sudan’s Darfur region controlled by the Rapid Support Forces, further tightening domestic liquidity.

The lawmaker added that many South Sudanese are now forced to wait for traders to deposit cash before banks can disburse salaries, often in limited amounts such as SSP 100,000 or SSP 50,000, underscoring the depth of the liquidity crisis.

Observers say the situation exposes the limits of South Sudan’s financial infrastructure, where digital systems exist but remain unevenly trusted and inconsistently integrated across banks, government institutions, and mobile money platforms.

A high-level meeting convened by President Kiir with members of the Economic Cluster discussed ways to address the current economic crisis, including coordination among financial and security institutions to stem hoarding and stabilise liquidity.

The meeting was attended by Dr. Benjamin Bol Mel, Vice President and Chair of the Economic Cluster, Athian Ding Athian, Governor of the Central Bank Dr Addis Ababa Othow, and Simon Akuei Deng, Commissioner General of the National Revenue Authority.

Economists say restoring trust in banks — through predictable access to deposits, transparent liquidity management, and credible enforcement against hoarding — remains critical if South Sudan is to transition away from a cash-heavy economy and build a functioning digital public financial system.